The third wave of the Covid-19 pandemic has sequentially dampened India’s service sector growth in January 2022.
Accordingly, the seasonally adjusted India Services Business Activity Index came in at 51.5 (index reading) for January.
However, it was lower than 55.5 (index reading) in December.
The PMI ranges between 0 and 100, with a reading of above 50 indicating an overall increase compared to the previous month.
Besides, the headline figure pointed to the slowest rate of expansion in the current six month sequence of growth.
The upturn was reportedly stymied by the intensification of the pandemic, the reintroduction of restrictions and inflationary pressures, the IHS Markit India Services PMI report said.
According to survey participants, demand was restricted by the fast spread of the Omicron variant and the reinstatement of curfews in parts of the country.
“New work intakes increased further at the start of the year, taking the current sequence of expansion to six months. That said, the rate of growth was only slight and the weakest over this period.”