India’s services sector is recovering the growth momentum it lost in September


Services activity in India recovered some of the growth momentum lost in the previous month with the October Purchasing Managers’ Index (PMI) printing comes in at 55.1 from a six-month low of 54.3 in September.

The indices range between 0 and 100, with a reading above 50 indicating a general increase from the previous month, and below 50 a general decrease.

Favorable demand for services continued to support growth in new business and production at the start of the third quarter of the current fiscal year.

“Supported by the continued recovery of new work, service providers continued to hire additional staff, with improving business confidence also supporting hiring activity. The latest results also showed a slight acceleration in inflation rates for input costs and output taxes,” S&P Global India said in a statement.

The headline index was above the neutral threshold of 50.0 for the 15th consecutive month, surpassing its long-term average. According to survey participants, a continued increase in new business led to higher service output.

At the subsector level, consumer services led the growth in activity, new orders and employment. Finance and insurance came in second place for these three measures, while transport, information and communication were at the bottom.

“October’s results show that service providers had no problems getting new work in October, despite increasing their charges again. Therefore, the sector remained firmly in expansion territory as business activity and payroll increased to support increasing demand,” said Pollyanna De LimaEconomics Associate Director at S&P Global Market Intelligence.

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