Activity in India's dominant services sector contracted sharply in June as tighter restrictions to contain a resurgence of coronavirus cases hammered demand and forced firms to shed jobs at a rapid clip, a private survey showed on Monday. IHS Markit's Services Purchasing Managers' Index plunged to 41.2 last month from an already depressed 46.4 in May. As a result, firms shed headcount for a seventh straight month, with the fastest reduction rate recorded in June. The depressed services sector results are in line with the overall downturn in business activity, underscored by a sister survey on Thursday which showed manufacturing activity contracted for the first time in almost a year in June. The contraction in both manufacturing and services activity sent the overall composite index plunging to 43.1 in June from 48.1 in May.

Source: Mint July 05, 2021 05:03 UTC