This is the largest month-to-month contractions in business activity and new orders since data collection began over 14 years ago in April, according to the latest PMI data.
India's service sector recorded its largest month-to-month
contractions in business activity and new orders since data
collection began over 14 years ago in April, according to the
latest PMI data.
The IHS Markit India Services Business Activity Index was at 5.4 in April, a steep decline from 49.3 in March, the most severe contraction in services output since records began in December 2005.
The global shutdowns as part of the measures undertaken to stem the spread of coronavirus (COVID-19) were among the key factors that led to an unprecedented drop in both the output and demand.
Approximately 97 percent of survey respondents pointed out to a reduction in output, highlighting the widespread impact of the COVID-19 pandemic.
The lockdowns have crippled global demand as well, casting a shadow on job security and heightening fears of a recession. Consequently, export markets bore the brunt with the entire survey panel registering lower overseas sales.
The April Manufacturing PMI had also come in at a record low of 27.4 compared to 51.8 in March, pointing to the sharpest deterioration in business conditions across the sector.
Both input costs and output prices were lowered markedly as suppliers and manufacturers themselves offered discounts in an attempt to secure orders.