SERVICES PMI IMPROVES

July 3: India’s main services index improved in June, as the nation started a phased exit from the world’s largest lockdown.

The Markit India Services PMI climbed to 33.7 in June, gaining for a second month after April’s record low of 5.4. A reading below 50 indicates contraction in activity.

Data published by IHS Markit on Wednesday showed activity in the manufacturing sector is also recovering, but still in the shrinkage zone. These better numbers pushed the composite index higher to 37.8.

The dip in activity means the services failed to support the economy last quarter. That’s prompted economists to forecast a 18.9 per cent drop in GDP during the period. —Bloomberg