India's Services Sector Continues to Lose Momentum As Resurgence in COVID-19 Cases Weighs on Business, Job Cuts Resume
The growth in India's dominant services sector continued to lose steam in December on the back of rising coronavirus cases. The new strain of COVID-19 which has caused panic in the country has weighed on new business and employment, according to a private survey.
Mumbai, January 6: The growth in India's dominant services sector continued to lose steam in December on the back of rising coronavirus cases. The new strain of COVID-19 which has caused panic in the country has weighed on new business and employment, according to a private survey.
Pollyanna De Lima, economics associate director at IHS Markit, said in a release that the rise in coronavirus cases was reported as a key factor restricting the growth of new work intakes among service providers. Job cuts have resumed due to the increased business uncertainty over the next few months. India Reports 18,088 New COVID-19 Cases and 21,314 Recoveries in Past 24 Hours, Death Toll Rises to 1,50,114.
A Reuters report mentioned that Nikkei/IHS Markit Services Purchasing Managers’ Index slipped to 52.3 in December from November’s 53.7 but held above the 50-mark separating growth from contraction for a third straight month.
India has the second-highest number of coronavirus infections in the world. On Sunday it approved two coronavirus vaccines for emergency use but it could take years to vaccinate over 1.3 billion people with its rudimentary healthcare system.
(The above story first appeared on LatestLY on Jan 06, 2021 11:02 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).