India’s Services Sector Improves In Oct, Check PMI Data Here
The survey, conducted by S&P Global, found that job creation also strengthened in the month, while input costs increased at the strongest pace seen in three months
India’s services activity improved to 58.5 in October, in comparison to 57.7 clocked in September. The seasonally adjusted HSBC India Services Business Activity Index in October showed that output expansion remained robust in the month as growth recovered from the ten-month low seen in September.
The survey, conducted by S&P Global, found that job creation also strengthened in the month, while input costs increased at the strongest pace seen in three months. Elevated business expenses were majorly attributed to a surge in wage bills and food costs.
The upturn in business activity was supported by robust demand conditions and the rate of growth in sales. The recent data showed that new export sales across the service economy recovered, backed by strengthening demand from clients in Asia, the Americas, Middle East, Africa, and the UK.
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Services employment also expanded at the quickest pace seen in 26 months. About 13 per cent of survey respondents pointed out job creation, against 9 per cent in September. A consistent improvement in new business helped firms to bring on full-time and part-time workers.
"Outstanding business volumes increased for the thirty-fourth straight month, with the rate of accumulation quickening to the highest since July. Input price inflation accelerated to a three-month high in October, with services companies mainly reporting greater food and wage costs. The overall rate of inflation remained below its long-run average, however. Out of the four monitored sub-sectors, cost pressures were highest in Consumer Services," S&P noted.
Pranjul Bhandari, Chief India Economist, HSBC, said, "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. Although input price inflation is accelerating from higher food and wage costs, the general inflation trajectory remains below the long-run average. Meanwhile, business sentiment receded slightly from September, but the future
activity index still indicates broadly positive expectations for the year ahead."
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