Service sector activity in the country recovered from its 10-month low in September to 58.5 in October. It was supported by strong expansion in production and new business, which boosted job creation. This information has been given in a monthly survey. The seasonally adjusted HSBC India Services Business Activity Index stood at 58.5 in October as against 57.7 in September. In the language of Purchasing Managers Index (PMI), a score above 50 means expansion in activities and a score below 50 means contraction.
Pranjul Bhandari, Chief Economist (India), HSBC said, “India’s services sector activity recovered from its 10-month low in September to 58.5 last month. Indian services sector output and consumer demand expanded strongly in October, with job creation hitting a 26-month high.” The latest data also highlighted the growth of new export sales in India’s services economy. Those surveyed attributed this to strong demand from customers in Africa, Asia, America, West Asia and the UK.
In addition, about 13 percent of those surveyed reported job creation, compared to nine percent in September. Meanwhile, the HSBC India Composite Production Index rose to 59.1 in October from 58.3 in September. New business flows grew at a rapid pace in both the manufacturing and services sectors, boosting sales and employment growth at the overall level.
