GST pulls down July services PMI to 45.9, lowest level since Sept 2013

Manufacturing PMI contracted to 47.9 points in July, down from 50.9 in June

The introduction of the Goods and Service Tax (GST) has pushed down activity in the services sector to a nearly four-year low in July even as manufacturing activity reels at an eight-and-a half-year low. 

The widely-tracked Nikkei Purchasing Managers’ Index (PMI) on Thursday showed that PMI for the dominating sector of the Indian economy plunged to 45.9, its lowest level since September 2013. At an eight-month high, PMI had been 53.1 in the previous month of June.

The 50-point mark separates expansion from contraction.