Services Sector Recovers Growth Momentum

According to the data released by S&P Global on Thursday showed the services PMI increased to 55.1 in October from 54.3 in September led by robust domestic demand

Amid the inflationary pressures, India’s services sector picked up pace in October as the Purchasing Managers’ Index (PMI) increased from September’s six-month low.

According to the data released by S&P Global on Thursday showed the services PMI increased to 55.1 in October from 54.3 in September led by robust domestic demand.

Also, the October print is the 15th month in a row that the services PMI has gone above 50.

The key driver for this hike last month was the domestic demand however, overseas demand declined further, as per the survey data.

The report further stated that the majority of the gain came from consumer services, with finance and insurance second.

As per S&P Global, at the start of the third fiscal quarter, favourable service demand continued to support increases in new business and output. Furthermore, expansion rates accelerated from September’s six-month lows. 

It added that service providers hired more people as a result of the ongoing recovery in new business, and improved company confidence also encouraged employment.

Meanwhile, the manufacturing PMI – the other component of the composite index – had increased to 55.3 in October from 55.1 in September, as per the data released on November 1.