India Services PMI Rises To Four-Month High Of 55.8 In October
· Free Press Journal
India's services sector recorded its fastest expansion in four months in October, supported by stronger domestic demand and new business orders, according to the HSBC India Services Purchasing Managers' Index (PMI) released on Wednesday.
The seasonally adjusted index climbed to 55.8 from 55.2 in September, marking its highest reading since June.
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The index remained above the neutral 50 level, which separates expansion from contraction, and exceeded its long-term average.
Businesses reported improved demand conditions, new customer acquisitions and successful advertising campaigns as factors supporting sales growth.
Manufacturing PMI Falls To 54.7 In October As Factory Growth SlowsDomestic Demand Drives Services Growth As Exports Slow
All four broad services segments recorded faster increases in business activity and new orders during October.
Finance and Insurance led growth in both categories, while Real Estate and Business Services registered the weakest expansion.
However, international demand remained subdued, with new export orders increasing at their slowest pace since February 2023.
Employment growth also weakened to a four-month low, suggesting that some businesses had sufficient staff to meet existing demand.
Pranjul Bhandari, Chief India Economist at HSBC, said business conditions improved cautiously despite slower export growth and hiring.
She noted that overall demand remained relatively strong, while inflationary pressures showed signs of easing.
India's composite PMI, covering manufacturing and services, increased to 56.2 in October from 55.9 in September, indicating the strongest expansion in aggregate output in four months.
Input Cost Inflation Falls To Lowest Since August 2020
The survey showed that input prices increased at their slowest pace in more than six years, easing pressure on service providers.
Nevertheless, some businesses reported higher expenditure on electricity, labour, raw materials and transportation.
Consumer Services was the only segment where input cost inflation accelerated compared with September. Finance and Insurance recorded the weakest increase in input prices.
Lower cost pressures also contributed to slower increases in selling prices across the sector. Fewer than 3% of surveyed service providers raised their charges in October.
Overall selling price inflation remained marginal and declined to its lowest level since June, reflecting reduced pricing pressures despite continued growth in business activity.