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India’s services sector activity improves in October
Nov-06-2024

Recovering from September's ten-month low, India’s services sector activity gained traction in the month of October, aided by healthy customer demand domestically and from abroad. In response to positive sales developments, and optimism regarding near-term prospects, firms recruited extra workers to the greatest degree in just over two years.

According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in October from 57.7 in September. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 59.1 in October as against 58.3 in September. 

On the price front, input price inflation accelerated to a three-month high in October, with services companies mainly reporting greater food and wage costs. However, the overall rate of inflation remained below its long-run average. The cost pressures were highest in Consumer Services.

Companies shared part of their additional cost burdens with clients by continuing to lift selling prices. The rate of charge inflation picked up to the strongest since July and outpaced the series trend. Business sentiment remained positive in October, despite receding a little from September.


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