India's services activity expanded at its fastest pace in four months in October due to greater inflows of new business, a business survey showed on Friday.
The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector output on a monthly basis, rose to 51.7 in October from 50.7 in September, rising for the fourth straight month.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Service providers retained an optimistic outlook regarding business activity over the coming 12 months, while the labour market was further reinforced as firms raised their payroll numbers over the month. On the price front, the service sector experienced further upward cost pressures as the rate of inflation quickened to the joint-fastest since April 2016.”Aashna Dodhia, Economist at IHS Markit
While services activity picked up, there was a slowdown in rate of growth of Indian manufacturing output, the survey said.
Key highlights from the survey:
- Overall upturn in services sector supported by rising new work for the second straight month in Oct.
- Manufacturing books, however, were broadly unchanged.
- Business confidence was frequently associated by panellists to be long-term benefits of GST.
- The rate of input cost inflation in service sector intensified to the joint-fastest since April 2016.
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