Bengaluru: Activities in the Industrial Industrial Service Industry shrank for the third consecutive month in July as a restriction to control the demand for Pandemic Pandemic Coronavirus, with companies that change the most pessimistic in a year, a private survey showed on Wednesday.
Restrictions were imposed by the local government to curb the second wave of Covid-19 which destroyed casually over the past few months after a decrease in infection rate, but the threat of the third wave had given a shadow on the economic outlook that was already weak.
Although the service purchasing manager index was compiled by IHS Markit, up to 45.4 in July from 41.2 in June remained strong under the 50-level growth that separated from contractions for the third month.
The overall demand in this sector shrank again last month, although at slower speeds, and foreign demand declined for the 17th month – the longest lines since the sub-index began in September 2014.
“The Covid-19 environment continues to burden The performance of the service sector is very important for the Indian economy, “said Pollyanna de Lima, Director of Economic Associate in IHS Markit.
“July data is rather disappointing, with new business entering and output falls solidly for a month, but at least there is a slowdown in the contraction rate.” Weak demand and Outlook Dour encourage service companies to cut headcounts for the eighth month, showing may take a long time for the labor market to reach the pre-pandemic level.
Meanwhile, business expectations change negatively for the first time since July last year.
“Uncertainty when a pandemic will end, and concerns about inflationary pressures and financial problems, reduce business confidence in July,” added De Lima.
Both the cost of input and prices charged increased at a faster speed last month, with the latter soaring at the fastest level in eight months.
However, the Reserve Bank of India is expected to keep the main interest rates untouched until the next fiscal year to help the economy through a pandemic.
The overall composite index rose to 49.2 last month from June 43.1, remains below 50 signs for the third month as a contraction in the service offset the rebound in manufacture.