India’s Services Activity Rises in October on Strong Demand and Employment Growth

India’s services Purchasing Managers Index (PMI) climbed According to the monthly report published by HSBC and compiled by S&P Global, it fell from 57.7, the lowest level in ten months, in September to 58.5 in October.

The seasonally adjusted HSBC India Services Business Activity Index rose on strong sales lines and strong demand, boosting business activity levels.

“India’s services PMI reached 58.5 last month, recovering from a ten-month low in September. In October, India’s services sector experienced strong expansions in manufacturing and consumer demand as well as job creation, the highest in 26 months HSBC’s India chief economist Pranjul Bhandari said that input price inflation accelerated due to high food and wage costs, and the general inflation rate remained below the long-term average.

Latest data also revealed that growth in new export sales across India’s services economy is picking up; Survey respondents attributed this to stronger demand from customers in Africa, Asia, the Americas, the Middle East and the UK.

Input price inflation rose to a three-month high in October; Service companies mostly reported increased food and wage costs.

However, the overall inflation rate remained below the long-term average.

Business sentiment briefly remained positive, thanks to healthy demand trends and new customer demands.

In parallel, the HSBC India Composite Manufacturing Index rose to 59.1 from September’s low of 58.3; New business entries also expanded at faster rates in both the manufacturing and service sectors, driving combined sales and employment growth.

There was a significant increase in service employment in October, which was the fastest in the last 26 months. The report notes that about 13 percent of panelists reported job creation; This rate was 9 percent in September.

PMI research covers more than 400 sectors.

A PMI above 50 indicates expansion, while a PMI below 50 indicates contraction.

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