Services sector shrinks for first time in 13 months, PMI falls to 49.6

Index fell from 50.2 in May, largely due to stagnant sales showed the data, which came ahead of Economic Survey for FY19

Services sector, the dominating area of the country’s economy, shrank for the first time in 13 months in June, due to weak sales and high taxation, showed the widely-tracked Nikkei purchasing managers’ index (PMI).
 
PMI fell to 49.6 points in June, down from 50.2 in May due to broadly stagnant sales, showed the data, which came ahead of Economic Survey for FY19 and Union Budget for FY20.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
 
“Services companies are hoping that some stimulus will boost demand in the coming months,