(IHS Markit) India’s service sector showed less signs of recovery from Covid-19, with the activity index falling further to 41.2 in June, from 46.4 in May.
The decline in business activity index in June was the fastest since July 2020 on intensifying Covid crisis and tighter restrictions.
Output and new work intakes plunged at the fastest rate since July 2020, leading to reductions in employment.
New orders fell in four out of the five broad areas of India’s service economy, with the Consumer Services the worst hit.
Global demand for Indian services fell, as new export orders fell for the sixteenth consecutive month.
Material costs and higher transportations pushed up input prices, with inflation hitting a five-month low.
Service businesses remained neutral in output expectations for the coming twelve months, as overall sentiment fell for the third month.
BSE SENSEX is up +0.75%, USDINR is down -0.29%.
