New Delhi
India’s services sector saw a significant rebound in October, with growth recovering from a ten-month low in September. According to a report on Wednesday, business activity and customer demand surged, resulting in increased job creation.
The survey, conducted by S&P Global, reported a sharp expansion in output and new orders, both domestically and internationally. The growth was driven by rising consumer demand, with services exports recovering, particularly from regions including Africa, Asia, the Americas, the Middle East, and the UK.
Pranjul Bhandari, Chief India Economist at HSBC, noted that the Services PMI reached 58.5 in October, a significant recovery from the previous month’s low of 57.7. The surge in activity was accompanied by the creation of jobs, marking the highest rate of hiring in 26 months. Around 13% of firms reported job creation in October, up from 9% in September, as companies responded to improved business conditions.
Despite a rise in input costs, primarily due to higher wages and food prices, firms raised selling charges to maintain margins. The strong demand and healthy sales pipelines are expected to sustain the services sector’s growth momentum in the near term.
