NEW DELHI : India’s services sector, which accounts for more than half of the nation’s gross domestic product, collapsed to the lowest level in the world, stoking fears that the economy is headed for a recession as a crushing lockdown shut businesses and kept consumers indoors.
The services Purchasing Managers’ Index (PMI) for India sank to an unprecedented 5.4 in April from 49.3 in March, the sharpest deterioration in services activity since IHS Markit started collecting the data in December 2005.
A reading below 50 indicates activity is shrinking. Wednesday’s data indicates services have been hit worse than the manufacturing sector.
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