India's services sector sees upturn in October on improved demand
The Hindu
India's services sector activities witnessed an upturn in October on the back of stronger gains in n
India's services sector activities witnessed an upturn in October on the back of stronger gains in new business and increased hiring amid strengthening demand, a monthly survey said on Thursday.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from September's six-month low of 54.3 to 55.1 in October, pointing to a quicker and marked rate of growth.
The headline figure was above the neutral 50 threshold for the fifteenth straight month. In Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
"The October results show us that service providers had no trouble securing new work in October, despite lifting their charges again. Hence, the sector remained firmly inside expansion territory as business activity and payroll numbers were raised to support strengthening demand," Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said.
According to the survey, the domestic market was the main source of new business gains, as foreign sales decreased further at the start of the third fiscal quarter. "Monthly deteriorations in international demand have been registered since the onset of COVID-19 in March 2020," it noted.
Ongoing increases in new business and output requirements continued to support job creation in the service economy. Employment rose for the fifth month in a row and at the second-fastest pace in more than three years.
Optimistic growth projections also boosted job creation in October, with 30 per cent of survey members forecasting higher volumes of business activity by October 2023. Overall, confidence was at its highest level in just under eight years.