New Delhi: Rising cases of corona infection have slowed down service sector activities. The boom in service sector activity slowed in March. The second wave of Corona has reduced the number of people in malls, restaurants and hotels. This has led to a decline in jobs in the sector for the fourth consecutive month. In March, service sector business activity in India fell to 54.6. In February, it stood at 55.3, the highest score in the last 12 months. A score below 50 in the PMI indicates a sharp decline in business activity.
Foreign demand also declined
While some companies say their activities have increased due to elections, increased sales and increased demand in the states, some companies have also been blamed for the Covid-19 due to footfall, customer uncertainty and restrictions. In fact, over the last few months, there has been an increase in service sector activities in demand and sales due to elections in the states. Analysts say that if the Koro ban is increased, the activities of the service sector will suffer a major setback. External demand has not been encouraging for India’s service sector companies. The decline in demand from abroad was recorded for the 13th consecutive month.
Difficulties due to inflation and covid sanctions
Costs of service sector companies also rose in March. Input costs have increased. In fact, the sharp rise in inflation over the last few months has pushed up the prices of service sector companies. That is why the performance of companies in this sector has also declined. The service sector employs a large number of people. Therefore, this decline is worrisome.