new delhi indias economy showed signs of cooling in june as the slow easing of localised lockdowns hurt activity a factor likely to encourage monetary policy makers meeting next week to consider keeping interest rates at record lows to foster a durable recoverycontractions in both manufacturing and services sectors which contribute more than twothirds of indias gross domestic product pulled the needle on an overall activity indicator to 5 from 6 a level not seen since february and the first downward shift since may 2020 data the gauge uses a threemonth weighted average to smooth out volatility and a move left signifies loss of momentumwhile the deadly second wave of covid19 has receded the economy is facing a bumpy ride given the slow pace of vaccinations and the looming threat of another wave a basket of highfrequency alternative and market indicators such as retail activity and road congestion isnt showing the kind of strong recovery that was expected abhishek gupta india economist at bloomberg economics said in a report published tuesdayheres more india data coming in the days ahead goods and services tax data released by the finance ministry around the first week of every month is a key indicator of consumption auto sales published by companies such as maruti suzuki india ltd and hero motocorp ltd on the first day of every month serve as an indicator of consumer demand surveys of purchasing managers by ihs markit out early next month will offer an early glimpse of manufacturing and services activity july unemployment rate from research firm center for monitoring indian economy pvt will be out early next week offering a window on the labor market in the absence of realtime official datareserve bank of india interestrate decision on august 6here are the details of the dashboard for junebusiness activitya contraction in indias services sector deepened as localized curbs to control the virus spread hurt consumer demand and business activity the markit india services index declined to 412 last month from 464 in may with a reading under 50 indicating a contraction a similar survey also pointed to shrinking activity in the manufacturing sector both of which dragged the composite index deeper into contraction territoryexportsexports rose 483 yearonyear in june having clocked a 694 yearonyear rise in may aided by steady global demand overseas demand for engineering goods and chemical products helped as did shipments of farm produceconsumer activityretail auto sales a bellwether of consumer demand recovered although the industry was facing headwinds like a steep increase in commodity prices a semiconductor shortage and fear of a third wave according to kenichi ayukawa president of the society of indian automobile manufacturers neverthless with the second waves impact on rural demand abating motorcycle and twowheeler sales recorded a recovery in june the tractor segment also recovered last month with better monsoon prospects helping sentimentbank credit grew 58 in june from a year earlier easing from a 6 annual expansion seen in endmay central bank data showed liquidity conditions stayed comfortable