InvestorQ : How do you see the Services PMI for May? Is it showing signs of improvement?
sara Kunju made post

How do you see the Services PMI for May? Is it showing signs of improvement?

Answer
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4 months ago


Services continued to contract in the month of May as large swathes of the Indian economy continued to remain under lockdown. Most services continued to be under a virtual standstill although the services just about began in the second half of May. The PMI Services for May 2020 came in at 12.6. This is better than the April number of 5.4 so some negative momentum appears to be reducing. However, any number below 50 is still signifying a contraction and that is not a good sign. Hopefully, this will improve in the coming months as activity gets back to normal. This marks third consecutive month of contraction in PMI Services. Outlook for the services sector continues to remain weak on the back of low labour turn-in and weak order flows.