India’s services sector activity remained in deep downturn in June as the Covid-19 pandemic curtailed intakes of new work orders and disrupted business operations, a monthly survey said on Friday.

The IHS Markit India Services Business Activity Index was at 33.7 in June, up from 12.6 recorded in May.

Despite the rise, the Indian services sector activity contracted for a fourth successive month in June. A print above 50 means expansion and a score below that denotes contraction, according to the IHS Markit India Services Purchasing Managers’ Index (PMI).

“India’s service sector continued to struggle in June as the country's coronavirus crisis worsened,” said Joe Hayes, economist at IHS Markit.

Simply put, the country is gripped in an unprecedented economic downturn which is certainly going to spill over into the second half of this year unless the infection rate can be brought under control, Hayes added.

Hayes further said though some companies have seen activity stabilise, but this is most likely just reflecting closures and temporary suspensions.

“A large fraction of the survey panel are still reporting falling activity and order book volumes, reflecting an intensely challenging domestic picture in India,” Hayes noted.