What does the services PMI falling below 50 actually mean?
Answer
Answer
India’s PMI for Services fell to 46.4 in May-21 from 54 in April, due to COVID 2.0 impact. There was a fall in fresh orders, renewals and services output. While PMI below 50 indicates contraction, it is the sequential momentum that is more critical. Composite PMI fell from 55.4 in Apr-21 to 48.1 in May-21.