New Delhi: India’s services activities accelerated in October this year on the back of healthy customer demand domestically and from abroad, as per a private survey released on Wednesday.
The HSBC India services Purchasing Managers’ Index (PMI) rose to 58.5 in October this year from 57.5 in September, driven by sharper expansions in output and new business.
While a PMI reading above 50 means expansion, the print below 50 shows contraction.
As per HSBC India services PMI, compiled by S&P Global, Indian service providers maintained a strong rate of output expansion in October, with growth recovering from September’s ten-month low.
“India’s services PMI recovered from its ten-month low in September to reach 58.5 last month. During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, which achieved a 26-month high,” said Pranjul Bhandari, Chief India Economist at HSBC.
The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services.
“The seasonally adjusted HSBC India Services Business Activity Index is based on a single question asking how the level of business activity compares with the situation the month before,” the survey said.
One of the closely-watched monthly numbers by economists and policy watchers, the survey said that input costs increased at the strongest pace for three months in October. Higher business expenses were largely attributed to rising wage bills and food costs.
“Efforts to pass these on to clients meant that selling charges were hiked again,” it said.
The survey said that business sentiment remained positive in October this year despite receding
a little from September.
