Service activities decline for 3rd straight month in July due to Lockdown
Published On: Wednesday, August 4, 2021 | By: Team KnowMyStock
The biggest sector of India's economy, Services, continued to contract for the third month in a row in July due to restrictions imposed by state governments to arrest the spread of the Covid-19 pandemic according to a widely tracked IHS Markit purchasing managers' index (PMI) survey. Business activity, new orders, and employment declined in July, according to a commentary associated with the survey. The latest data also pointed to an intensification of inflationary pressures across the sector, it said. New work intakes also fell for the third month running in July, albeit at a softer pace than in June. In addition to challenging conditions domestically, firms observed a further deterioration in international demand for services. New business from abroad decreased at a sharp pace that was little changed from June.
Consumer services was the worst-affected segment, noting the quicker declines in new orders and output out of the four categories for which contractions were recorded. Transport & storage was the only sub-sector which registered growth of business activity and sales.
In line with sustained falls in new work, there was a further reduction in service sector jobs during July. Employment contracted for the eighth consecutive month, albeit at amoderate pace that was slower than that seen in June.
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