India’s services PMI Business Activity Index climbed from 58.9 in October to 59.8 in November, driven by robust new business intakes that spurred output growth, according to the HSBC India Services Purchasing Managers’ Index (PMI) survey by S&P Global released on Wednesday.
The seasonally adjusted index indicated a “historically sharp” expansion in output, marking a faster pace than the previous month.
“Employment growth remained modest, with most companies reporting no change in payroll numbers. Meanwhile, India’s composite PMI remained strong, though it softened slightly to 59.7 in November, reflecting slower growth in factory production,” said Pranjul Bhandari, Chief India Economist at HSBC.
Indian services activity accelerated in November after losing some momentum in October, supported by a faster upturn in new business intakes. International sales continued to improve, though the rate of expansion fell to an eight-month low.
Underlying data showed that positive demand trends were reinforced by a general absence of price pressures, the report said.
“Demand for Indian services continued to strengthen, as reflected by another expansion in new business intakes. The rate of increase was sharp, quicker than in October, and above its long-run average,” the survey added.
Where external sales rose, firms reported gains from Asia, Europe, and the Middle East, although panel members noted that fierce international competition and cheaper services abroad limited growth.
The report also noted that while India’s services sector added jobs in November, employment growth remained moderate, broadly similar to the previous two months.
Firms remain optimistic about output growth, citing favourable demand, greater social media presence, marketing initiatives, and restrained pricing plans as key drivers of confidence.
Meanwhile, the manufacturing sector eased in November, with the HSBC Manufacturing PMI recording 56.6.
(IANS)