<p>New Delhi: After slumping to a 10-month low in September India’s services sector growth revived in October on the back of strong expansions in output and consumer demands, an industry survey conducted by S&P Global showed on Wednesday.</p><p>India’s Purchasing Managers’ Index (PMI) for services jumped to 58.5 in October from 57.7 recorded in the previous month.</p><p>The index has been above the neutral 50-mark that separates contraction from expansion for the 39 months straight. The PMI print above 50 indicates growth in the sector while below 50 shows contraction. It has been above 50-mark for 39 months in a row.</p>.Markets, led by IT stocks, cheer Donald Trump victory.<p>Robust sales pipelines and strong demand conditions supported the upturn in business activity. The rate of sales growth was historically elevated and accelerated from September's ten-month low, S&P Global said in the monthly report.</p><p>“During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, which achieved a 26-month high,” said Pranjul Bhandari, Chief India Economist at HSBC.</p><p>Employment in the services sector in October increased at the sharpest pace in 26 months. Around 13% of services firms that participated in the monthly survey reported job creation, compared to 9% in September. Capacity pressures also boosted job creation. Outstanding business volumes increased for the thirty-fourth straight month, with the rate of accumulation quickening to the highest since July.</p><p>Latest data also highlighted a recovery in growth of new export sales across India's service economy, which survey respondents attributed to strengthening demand from clients in Africa, Asia, the Americas, the Middle East and the UK.</p>.<p>Input price inflation jumped to a three-month high in October, with services companies mainly reporting greater food and wage costs. The overall rate of inflation remained below its long-run average, however. Out of the four monitored sub-sectors, cost pressures were highest in consumer services.</p><p>“Although input price inflation is accelerating from higher food and wage costs, the general inflation trajectory remains below the long-run average,” said Bhandari.</p><p>Companies shared part of their additional cost burdens with clients by continuing to lift selling prices. The rate of charge inflation picked up to the strongest since July and outpaced the series trend.</p><p>Meanwhile, business sentiment receded slightly from September, but the future activity index still indicates broadly positive expectations for the year ahead. A quarter of the surveyed firms forecast higher output volumes in the coming year on the back of healthy demand trends and marketing efforts. </p>
<p>New Delhi: After slumping to a 10-month low in September India’s services sector growth revived in October on the back of strong expansions in output and consumer demands, an industry survey conducted by S&P Global showed on Wednesday.</p><p>India’s Purchasing Managers’ Index (PMI) for services jumped to 58.5 in October from 57.7 recorded in the previous month.</p><p>The index has been above the neutral 50-mark that separates contraction from expansion for the 39 months straight. The PMI print above 50 indicates growth in the sector while below 50 shows contraction. It has been above 50-mark for 39 months in a row.</p>.Markets, led by IT stocks, cheer Donald Trump victory.<p>Robust sales pipelines and strong demand conditions supported the upturn in business activity. The rate of sales growth was historically elevated and accelerated from September's ten-month low, S&P Global said in the monthly report.</p><p>“During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, which achieved a 26-month high,” said Pranjul Bhandari, Chief India Economist at HSBC.</p><p>Employment in the services sector in October increased at the sharpest pace in 26 months. Around 13% of services firms that participated in the monthly survey reported job creation, compared to 9% in September. Capacity pressures also boosted job creation. Outstanding business volumes increased for the thirty-fourth straight month, with the rate of accumulation quickening to the highest since July.</p><p>Latest data also highlighted a recovery in growth of new export sales across India's service economy, which survey respondents attributed to strengthening demand from clients in Africa, Asia, the Americas, the Middle East and the UK.</p>.<p>Input price inflation jumped to a three-month high in October, with services companies mainly reporting greater food and wage costs. The overall rate of inflation remained below its long-run average, however. Out of the four monitored sub-sectors, cost pressures were highest in consumer services.</p><p>“Although input price inflation is accelerating from higher food and wage costs, the general inflation trajectory remains below the long-run average,” said Bhandari.</p><p>Companies shared part of their additional cost burdens with clients by continuing to lift selling prices. The rate of charge inflation picked up to the strongest since July and outpaced the series trend.</p><p>Meanwhile, business sentiment receded slightly from September, but the future activity index still indicates broadly positive expectations for the year ahead. A quarter of the surveyed firms forecast higher output volumes in the coming year on the back of healthy demand trends and marketing efforts. </p>