Services PMI registers upturn from 6-mth low
S&P Global India Services PMI Index rises to 55.1 in Oct improved demand from 54.3 in Sept; Domestic market was the main source of new business gains
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New Delhi: 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," said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence. 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.
