Services Activity Shrank Again In July, Outlook Turned Pessimistic Services Activity Shrank Again In July, Outlook Turned Pessimistic Although the Services Purchasing Managers' Index, compiled by IHS Markit, rose to 45.4 in July from 41.2 in June it stayed firmly below the 50-level. Updated: August 04, 2021 11:48 am IST Activity in the country's dominant services industry shrank for a third consecutive month in July as restrictions to control the coronavirus pandemic hit demand, with companies turning the most pessimistic in a year, a private survey showed on Wednesday. Restrictions imposed by local governments to curb the devastating second wave of COVID-19 were relaxed over the past few months following a drop in infection rates, but the threat of a third wave has cast a shadow over the already weak economic outlook.