Service sector activity continued to revive during April, even in parts of the world such as India and Europe where extensive restrictions remain in place to contain Covid-19.
The resilience of the sector underpins hopes that 2021 will see a strong rebound in global economic activity, as vaccination programs reach a larger share of the world’s population, albeit at very different rates in developed and developing economies.
India is experiencing a devastating Covid-19 surge that has shattered global records for new cases. The country of about 1.3 billion people has seen infections rise by more than 1 million in the past week alone, bringing its total number of cases since the start of the pandemic to more than 18 million.
The worst-hit Indian states have responded by imposing new restrictions on households and businesses. Nonetheless, a survey of purchasing managers released Wednesday indicated that activity in India’s services sector slowed during April, but didn’t decline. That marks a contrast with more extensive lockdowns a year earlier, when India saw one of the world’s sharpest declines in services activity.
When combined with a similar survey of manufacturers out Monday, the survey suggests the Indian economy may still be growing, although further restrictions that may have a larger impact on economic activity are likely.
