India Services Growth Strengthens Sharply On Robust Demand

(RTTNews) - India's service sector activity expanded at one of the fastest paces in thirteen years amid strong demand conditions, the results of the purchasing managers' survey by S&P Global showed on Thursday.

The services purchasing managers' index, or PMI, rose to 61.0 in September from 60.1 in August. A score above 50 indicates expansion in the sector.

In September, strong new business influxes and effective marketing contributed to the increase in output, the survey said.

New orders grew substantially in September, at the second-fastest pace since June 2010. The surge in sales was largely linked to favourable market dynamics and fruitful advertising.

There was also a sharp upturn in demand from abroad, particularly from clients based in Asia, Europe, and North America. Despite easing to a 3-month low, the overall rate of growth in new export business was marked and one of the quickest seen in series history.

Indian service companies added workforce numbers to keep on top of current workloads and in anticipation of further growth in the coming months. The pace of job creation was moderate, but above its long-run average.

On the price front, input price inflation eased notably to the weakest since late 2020. The overall rate of inflation was solid, though the softest in six months.

Firms in the services industry are optimistic about the future, with sentiment improving to its highest point in over nine years.

The composite output index came in at 61.0 in September versus 60.9 in August, one of the strongest rates of expansion in the private sector in just under 13 years. Services firms noted a quicker increase in sales, while manufacturers saw a slowdown.