India services sector growth hits four-month high in October
The HSBC India Services Purchasing Managers' Index rose to 55.8 as domestic demand drove expansion and cost pressures eased.
India's services sector activity reached its quickest expansion in four months in October, according to data released by S&P Global on Wednesday. The HSBC India Services Purchasing Managers' Index (PMI) climbed to 55.8 in October from 55.2 in September, as reported by ANI.
The growth was primarily fuelled by domestic demand, new client wins, and advertising. While all four broad service categories saw increased output, the Finance and Insurance segment led the expansion. Real estate and business services recorded the slowest growth among the surveyed segments.
Input cost inflation dropped to its lowest level since August 2020, offering relief to service providers. Although some firms reported higher costs for labour, electricity, raw materials, and transportation, fewer than 3 per cent of companies increased their selling prices.
HSBC Chief India Economist Pranjul Bhandari said the rise in the services PMI reflected improved business conditions, though she noted that new export orders saw their slowest expansion since February 2023. Bhandari also stated that employment growth slowed to its weakest pace since June.
The broader private sector also saw increased activity, with the HSBC India Composite PMI Output Index rising to 56.2 from 55.9 in September. While service providers expressed confidence in output for the next 12 months, business optimism weakened in October and stayed below its long-term average.