08-05-2021 02:59 PM | Source: Angel Broking
Quote on India Services PMI Numbers By Mr. Jyoti Roy, Angel Broking
News By Tags | #5802 #5948 #607 #318

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Below is quote on India Services PMI Numbers by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

While manufacturing has rebounded strongly post the second wave, services continue to remain in a contractionary mode as indicated by the services PMI numbers which registered a third reading of below 50 at 45.4. However the pact of contraction slowed down as the reading improved from 41.2 in June. The services sector witnessed a contraction across all parameters including business activity, new orders and employment. Due to the contraction in the services PMI numbers the composite index too registered a reading of 49.2 in July up from 43.1 in June but still marginally below the 50 mark. Manufacturing activities however was the bright spot as the PMI increased from 48.1 to 55.3. However we expect the services sector to bounce back into the expansionary mode going forward due to continued unlocking of the economy while manufacturing activities are expected to strengthen further from current levels. Overall we expect continued improvement in economic activities which will be positive for the markets though the possibility of a third Covid wave will be the key risk to watch out for. 

 

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