Even as the lockdown began to ease to gear up economic activity, services PMI, a measure of India's services activity came in at 12.6 for May month. In the previous month, it came in at a record low of 5.4.
A reading below 50 separates expansion from contraction and highlights slowing in economic activity. "Although he headline figure rose from April's unprecedented low of 5.4, it remained at a level which, prior to the coronavirus pandemic, was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity across India," the release said.
The composite PMI stood at 14.8 in May compared with 7.2 in April.
As per the statement, activity continues to shrank owing to fall in demand as well as shutdowns.
New work orders have dropped to abysmal low levels. Foreign demand too has taken a hit at India's services sectors.
Also, as per the latest survey data, employment level at services firm have further been dropped down.
Moreover ever since the inception of the survey in 2015, business confidence dropped to the negative territory.