Services sector contracted for the second month in a row in August as business activity and new work orders were hit by disruptions caused by the new GST regime, a monthly survey showed today.
However, it was not “all doom and gloom” as business orders and jobs fell at a slower rate than in July, as per the PMI (Purchasing Managers’ Index) survey. The Nikkei India Services PMI Business Activity Index improved slightly from 45.9 registered in July to 47.5 in August, but remained below the crucial 50-mark for the second straight month.