Services sector activity slows to 3-month low in April as Covid crisis disrupts economy
Services sector activity slows to 3-month low in April as Covid crisis disrupts economy
The Nikkei/IHS Markit Services Purchasing Managers Index (PMI) for the services sector fell to 54.0 in April from 54.6 in March. Despite the decline, the services sector remains resilient as it still remains above the 50-mark, which separates growth from contraction.
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UPDATED: May 5, 2021 14:55 IST
Services sector actvity eased to a 3-month low amid the ongoing Covid-19 crisis in India. (Photo: Reuters/Representational image)
The ongoing second wave of Covid-19 has eased growth in India’s dominant services sector due to localised lockdowns imposed in many states. Services sector activity in the country has slowed to a three-month low, according to a private survey.
India’s services growth slowed further in April, input costs soared
Growth in India’s dominant services sector eased to a three-month low in April but remained unexpectedly resilient even as the COVID-19 crisis intensified and cost pressures rose at the fastest pace in over nine years, a private survey showed.
The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 54.0 last month from 54.6 in March, its lowest since January but still well above the 50-mark separating growth from contraction and outpacing expectations in a Reuters poll for a fall to 51.1.
“Firms foresee higher output volumes over the course of the coming year, but business sentiment was dampened by concerns surrounding the pandemic,” noted Pollyanna De Lima, economics associate director at IHS Markit.
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Stocks recovered well on a volatile day.
Reuters reports: Financial and healthcare stocks pushed Indian shares higher on Wednesday after the central bank announced measures to help the sectors tide over a ferocious coronavirus wave in the country.
Reserve Bank of India Governor Shaktikanta Das announced relief to individual borrowers and small businesses by including one-time debt restructuring for loans, and unveiled a special liquidity window of up to 500 billion rupees ($6.76 billion) for banks to lend to the healthcare sector.
So far Europe has trailed behind other regions, both economically and in its vaccination program roll-out. Nonetheless, recent forward looking indicators and an acceleration on the number of vaccine doses administered, act as encouraging signals for growth within the region.
Economically, the Eurozone services sector returned to expansionary mode, for the first time since last August. The Services Purchasing Manager Index (PMI) reading at 50.3, represents growth across the hardest hit sectors and is a positive signal for the recovery in Europe. Albeit lagging behind the Manufacturing PMI, at a record 24-year high of 63.4, the services sector surprised to the upside. The Eurozone services activity, which was expected to remain in contraction mode, recorded modest growth despite that COVID-19 containment measures were tightened. The flash estimate reflects optimism for months ahead, particularly in France, as companies prepare for higher activity over the summer.
Europe: indicators point towards further growth | Calamatta Cuschieri
Markets summary
by Calamatta Cuschieri
So far Europe has trailed behind other regions, both economically and in its vaccination program roll-out. Nonetheless, recent forward looking indicators and an acceleration on the number of vaccine doses administered, act as encouraging signals for growth within the region.
Economically, the Eurozone services sector returned to expansionary mode, for the first time since last August. The Services Purchasing Manager Index (PMI) reading at 50.3, represents growth across the hardest hit sectors and is a positive signal for the recovery in Europe. Albeit lagging behind the Manufacturing PMI, at a record 24-year high of 63.4, the services sector surprised to the upside. The Eurozone services activity, which was expected to remain in contraction mode, recorded modest growth despite that covid-19 containment measures were tightened. The flash estimate reflects optimism for mont