Key facts
- HSBC's India Services PMI came in at 55.8 for October, below the preliminary estimate of 56.2, Reuters reported.
- New export business growth matched its weakest pace in 45 months, the survey showed.
- Hiring growth nearly stalled, matching June's pace as the slowest in 10 months.
- Input cost inflation eased to its lowest rate in over six years, though firms still reported higher electricity, labor and transport costs.
- Business confidence slipped from September and stayed below its long-run average, the survey showed.
India's services sector expanded at its fastest pace in four months in October, with the HSBC India Services Purchasing Managers' Index rising to 55.8 from 55.2 in September, Reuters reported on November 4. The reading came in below a preliminary estimate of 56.2. A figure above 50.0 indicates growth.
New business, a key gauge of demand, increased at its fastest rate since June, driven mainly by strong domestic orders. International demand was weaker, with growth in new export business matching its weakest pace in 45 months.
Employment growth almost stalled, matching the pace in June for the slowest hiring in 10 months. Price pressures eased: prices charged to customers rose at their slowest in four months, and input cost inflation fell to its lowest rate in over six years, though companies still reported higher electricity, labor, raw materials and transportation costs.
Business confidence slipped from September and remained below its long-run average. The composite PMI, which tracks both manufacturing and services, rose to 56.2 in October from 55.9 in September, its highest in four months.