Thursday, 8 October 2020

Stability in the service sector, but the employment situation is not yet right

 

The key figures in September this year, the services sector has shown stability. Nevertheless, it remained within the scope of contraction. There has been a decrease in new business in the services sector. The coronavirus epidemic has shown a profound effect on it. It has also led to the loss of employment.

The services sector PMI rose for the fifth consecutive month to 49.8 points from 41.8 in August. However, this is the seventh consecutive month when services sector activities have been declining.

Staying above 50 in the IHS Market India Services Purchasing Managers' Index (PMI) index indicates an expansion in the sector while staying below it indicates a decline. IHS Markit's Associate Director - Economics Pauliana de Lima said that India's service sector in September by the relaxation of the lockdown Has helped to return to reform.

The participants in the PMI survey have spoken of stability in business activities on a large scale. However, he also pointed to a slight drop in new work. According to the survey, companies in which there has been talking of an increase in work, they have Told about the commencement of business with the relaxation of the lockdown rules.

At the same time, companies that talk of business decline have argued that the epidemic has a strong impact on demand. On the employment front, the services sector has been in decline for the seventh consecutive month. Lima said that there has been a decline in employment. But many companies have said that the additional recruitment effort has failed due to a shortage of labor.

Meanwhile, the gross production of services and manufacturing activities PMI increased to 54.6 in September from 46 in August. Lima said that looking at the performance of the manufacturing industry brings a better picture of the Indian economy. During the last six months in September. 

Private-sector productio
n for the first time. Increased. Sales increased in September for the first time since February.

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