India’s services PMI hit a 4-month high of 55.8 in Oct from 55.2 as domestic demand and new orders grew, HSBC survey showed.

The HSBC India Services Business Activity Index, a monthly survey of service companies, stood at 55.8 in October, up from 55.2 in September.

A reading above 50 means growth, so the sector is still expanding and at its quickest pace since June. Orders led the way.

Firms said demand was strong, they won new clients and their advertising campaigns worked.

New business grew at its fastest pace since June, and all four broad segments of the survey saw faster growth in output and orders, with finance and insurance leading and real estate and business services growing the slowest.

Exports were the weak spot. New export orders still rose, but only slightly, and the pace was the slowest since February 2023. Home demand carried the month.

Hiring cooled even as business picked up. Employment growth was the slowest since June, as firms said they had enough staff for current work.

Pending work fell for the third time in four months, and optimism about the next 12 months slipped from September and sits below its long-run average. Costs gave some relief.

Input costs rose at their slowest pace since August 2020, more than six years ago, though some firms still reported higher bills for electricity, labour, raw materials and transport.

Consumer services felt the most pressure and was the only segment where costs rose faster than in September.

Fewer than 3% of service providers raised their prices. The wider economy gained too.

HSBC’s composite index, which tracks services and manufacturing together, rose to 56.2 from 55.9, the fastest growth in private sector output in four months.

Manufacturing slowed but still grew faster than services. Across both sectors, input cost inflation fell to an 11-month low.

Separately, the October manufacturing PMI slipped to 54.7.

The services index has now risen two months in a row, from 54.1 in August to 55.2 in September and 55.8 in October.

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