Services Business Activity Index indicates strongest rate of growth in ten and-a-half years
Private sector output in India increased at a sharper rate in October as growth quickened among both manufacturers and service providers. The Composite PMI Output Index rose from 55.3 in September to 58.7, signalling the strongest monthly expansion since January 2012. The upturn in business activity was supported by a substantial rise in new work intakes. Aggregate sales increased at a sharp rate that was the quickest since early-2012. The acceleration in growth was broad-based across the manufacturing and service sectors. October data pointed to a second successive monthly increase in private sector employment, but the rate of expansion was only slight as growth among service providers was partly offset by job shedding at goods producers.
The recovery of the Indian service sector was extended to October, with companies indicating that a notable pick-up in new business led to the fastest expansion in output in over a decade. More jobs were created as result, though business confidence remained subdued due to growing concerns surrounding price pressures. With input costs again rising sharply, companies lifted their fees at the fastest pace in close to four-and-a-half years. Rising from 55.2 in September to 58.4 in October, the seasonally adjusted India Services Business Activity Index signalled the strongest rate of growth in ten and-a-half years.
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