India’s services sector growth rose to a four-month high in October, boosted by new business and resilient domestic demand. The seasonally adjusted HSBC India Services Purchasing Managers’ Index (PMI) rose to 55.8 during the last month from 55.2 in September.
According to the latest data compiled by S&P Global, new client additions and successful advertising supported the increase in activity, with sales recording their fastest growth since June. Domestic demand remained the main driver of sales growth during October. The report noted that all four broad service categories covered by the survey recorded faster growth in new business and output, with Finance and Insurance leading the expansion. The report highlighted that easing of cost pressures also provided some relief to service providers. Input prices increased at their slowest pace in over six years, while the rate of increase in prices charged to customers slowed to its weakest level since June.
Meanwhile, the HSBC India Composite PMI Output Index increased to 56.2 in October from 55.9 in the previous month, marking the fastest rise in aggregate output in four months.
