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Service activity continues to contract in May due to lockdown, PMI at 12.6

Job losses across services sector continue as foreign orders remain missing

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Output expectations for the coming 12 months slumped to their most negative since records began in December 2005 amid forecasts of prolonged economic weakness domestically and overseas

Subhayan Chakraborty New Delhi

3 min read Last Updated : Jun 03 2020 | 9:45 PM IST

Services sector activity contracted for the second straight month in May as the nationwide lockdown led to a collapse in demand, causing heavy job losses, showed a monthly survey released on Wednesday.

The IHS Markit Services Business Activity Index (Services PMI) stood at 12.6 in May, up from 5.4 in April, which was the lowest reading in the world. In PMI parlance, the 50-mark threshold separates expansion from contraction.

In May, output sank due to extended business shutdowns and weak demand. The latest data points to a substantial decline in new work intake by Indian service providers.

This was blamed on the collapse

Topics : Service PMI India Services PMI Service sector PMI

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