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May services sector activity shrinks for 1st time in 8 months

May services sector activity shrinks for 1st time in 8 months
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May services sector activity shrinks for 1st time in 8 months
TNN / Jun 4, 2021, 06:59 IST
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NEW DELHI: Activity in the country’s crucial services sector plunged into contraction in May for the first time in eight months as the second wave of Covid-19 pandemic forced localised lockdowns which resulted in a decline in new business and output, a survey showed on Thursday.
At 46.4 in May, down from 54 in April, the India Services Business Activity Index was in contraction territory. The latest reading pointed to a solid rate of reduction that was nevertheless slower than those seen in the aftermath of the Covid-19 outbreak. According to panel members, the fall in output stemmed from the escalation of the pandemic and the reintroduction of restrictions, the survey showed. The survey is compiled from responses to questionnaires sent to a panel of around 400 ....

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