India's services activity downturn eases in August: PMI

New Delhi, Sep 3 (IANS) The Covid-19 pandemic continued to dent new business generation along with output of India’s service sector in August.

New Delhi, Sep 3 (IANS) The Covid-19 pandemic continued to dent new business generation along with output of India’s service sector in August.

However, the contraction rate has slowed than the previous months, showed the latest India Services Business Activity Index.

The index report said the lockdown restrictions also contributed to a record increase in outstanding business.

“Meanwhile, sustained revenue losses through the second quarter and increasing cost burdens led companies to raise charges for the first time since March,” the report said.

Consequently, the seasonally adjusted India Services Business Activity Index rose sharply from 34.2 in July to 41.8 in August, the highest since March, before the escalation of the global Covid-19 pandemic.

“Nevertheless, the latest reading, by coming in below the 50 neutral value again, indicated a continued decline in business activity,” the report said.

According to survey’s respondents, the fall in output was linked to a further weakening of demand conditions during August, while some businesses remained closed as a result of ongoing lockdown restrictions.

“The rate of contraction in output was solid overall, despite easing from the previous survey period as some firms gradually resumed operations,” the report said.

“New business placed at Indian service providers fell for the sixth month running in August amid weak market demand. That said, the rate of decline was the slowest in five months.”

–IANS

rv/sn/vd

ANA NEWS WIRE Disclaimer:
The African News Agency (ANA) is a news wire service and therefore subscribes to the highest standards of journalism as it relates to accuracy, fairness and impartiality.
ANA strives to provide accurate, well sourced and reliable information across Text, Images and Video. Where errors do appear, ANA will seek to correct these timeously and transparently.
The ANA platform also contains news and information from third party sources. ANA has sought to procure reliable content from trusted news sources but cannot be held responsible for the accuracy and opinions provided by such sources on the ANA platform or linked sites.
The content provided for on the ANA News Wire platform, both through the ANA news operation and via its third party sources, are for the sole use of authorised subscribers and partners. Unauthorised access to and usage of ANA content will be subject to legal steps. ANA reserves its rights in this regard.
ANA makes every effort to ensure that the website is up and running smoothly at all times, however ANA does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical issues that are beyond our control.