Categories: Business

Lockdown pulls India's service sector activity to standstill in April, PMI hits record low. Service activities hit record lows in April due to lockdown: PMI

Photo: PTI

Lockdown pulls India's service sector activity to standstill in April, PMI hits record low

Mumbai. The services sector of the country reached a record low in April. According to a monthly survey, during the nationwide lockdown (bandh), tightening restrictions on the movement of citizens and shutting down of businesses also impacted the services sector and the activities in the area were almost halted. The 'IHS Market India Services Business Activity Index' (PMI-Seva) stood at 5.4 points in April. This is a historical low of 49.3 points in March. It is also an indicator of the service sector's worst phase since the start of the survey in December 2005. PMI above 50 points shows an expansion in activities and a drop below 50 points. According to experts, there was a decrease in demand due to the nationwide lockdown. This led to a slowdown in business and production and a decline in business activity.

Economist Joe Haase, who is associated with the IHS market, said the PMI's main index 'Composite PMI Output Index' has also fallen by more than 40 points. This shows that economic activity was almost halted due to the lockdown. The 'Composite PMI Output Index' fell to 7.2 points in April from 50.6 in March. This shows the largest decline in economic activity in the history of the survey.

The 'Composite PMI Output Index' is prepared by combining PMI-service and PMI-manufacturing. Compared to the old figures, the country's GDP growth rate contracted by 15 percent year-on-year in April. On the employment side, the survey said that some service companies have started retrenching from the second quarter of the year as business needs fall. The country has a lockdown since 25 March. Its duration was extended twice and currently its third phase will end on 17 May. The number of corona virus infections in the country has crossed 49,000. While the death toll has reached 1,694.

This post was published on May 6, 2020 1:54 pm

Content Team

Recent Posts

We are going to become the world's largest 100% electrified rail network: Piyush Goyal

Photo: PTI There're clear signs that India is on path of getting back into action: Piyush Goyal at India Global…

ED raids Delhi NCR tour travel companies seized rs 3.57 crore. ED raids Delhi travel companies, seized Rs 3.57 crore

Photo: FILE ED raids Delhi NCR tour travel companies seized rs 3.57 crore New Delhi. The Enforcement Directorate (ED) has…