BENGALURU, Nov 4 (Reuters) – India’s dominant services sector expanded at its quickest pace in four months in October as improved domestic demand boosted new business, although hiring turned subdued as international orders weakened, a survey showed on Wednesday.
• HSBC’s India Services Purchasing Managers’ Index (PMI) rose to 55.8 from September’s 55.2, but was below a preliminary estimate of 56.2. A reading above 50.0 shows growth.
• New business – a key gauge of demand – increased at its fastest rate since June mainly because of strong domestic orders. However, international demand was muted, with growth in new export business matching its weakest pace in 45 months.
• Employment growth almost stalled, with hiring matching the pace in June – the slowest pace in 10 months.
• Inflationary pressure weakened as prices charged to customers rose at their slowest in four months. Input cost inflation eased to its lowest rate in over six years although companies continued to report higher electricity, labour, raw materials and transportation costs.
• Business confidence slipped from September and the index stayed below its long-run average, signalling cautious optimism about growth prospects.
• The overall composite PMI index, which tracks both manufacturing and services, rose to its highest in four months reaching 56.2 in October from September’s 55.9.
(Reporting by Shaloo Shrivastava; Editing by Jacqueline Wong)
