The services firms in India suffered additional losses of new business as the emergence of COVID-19 cases and reintroduction of pandemic measures limited demand.
- The uptake of new work and output declined at the fastest rate since July 2020, pushing companies to reduce employment. Business sentiment took a massive blow.
- India Services Business Activity index dropped to 41.2 in June from 46.4 in May as the economy experienced further decline in output.
- Companies stated the re-emergence of the COVID-19 crisis and tighter restrictions reduced demand for services.
- Business activity and new orders decreased in four of out the five major areas of India’s service economy, with major contractions recorded in Consumer Services. Transport & Storage was the only broad area to record growth.
Prices charged on India’s goods and services continued to rise slightly in June with the overall inflation rate being lower than 3-month low and lower than its long-run average.
BSE SENSEX gains +0.75%
Source: Markit.
