SER­VICES PMI IM­PROVES

The Asian Age - - Financial -

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

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