New Delhi, July 5

India’s services sector activities contracted further in June as the intensification of the Covid crisis and reintroduction of containment measures restricted demand, a monthly survey said on Monday.

The seasonally adjusted India Services Business Activity Index fell from 46.4 in May to 41.2 in June, as new work intakes and output contracted at the fastest rates since July 2020, which prompted companies to reduce employment again.

Export orders dip for 16th month

• The international demand for Indian services deteriorated further in June, with new exports orders falling for the 16th consecutive month

Subdued demand conditions resulted in a second successive monthly drop in new business received by services firms. The pace of contraction was sharp and the quickest since July 2020, the survey said.

In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction. — PTI