India’s Service Sector Soars with Record Growth in October

India's services sector showed impressive growth in October, with the Service PMI index rising to 58.5. Key drivers included strong sales, employment expansion, and increased export demand. Despite rising input costs, the sector remains optimistic about sustained growth amid high consumer demand and improved international market conditions.

India's services sector demonstrated a marked improvement in October, as the Service Purchasing Managers' Index (PMI) rose to 58.5, rebounding from a ten-month low of 57.7 observed in September, according to data from HSBC India compiled by S&P Global.

The report highlights strong sales pipelines and high demand as significant contributors to the sector's accelerated growth rate, which has surpassed its long-run average of 54.1. Notable is the sharp expansion in employment within the sector, marking the fastest growth in 26 months, driven by positive sales developments and business confidence in near-term growth.

Despite a spike in input costs, which rose at the quickest pace in three months, businesses continued to experience robust sales growth. New export sales also contributed to the sector's expansion, attributed to strong international demand from markets such as Africa, Asia, the Americas, and the UK, indicating a recovery in exports.

(With inputs from agencies.)