Services sector growth rebounds in Oct

Businesses were able to grow and generate demand despite facing sharp increases in wages and food costs

- Rhik Kundu

India's services sector bounced back in October, buoyed by strong customer demand after a lull in September, according to a survey released on Wednesday.

The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 58.5 in October from 57.7 in September. This is the 39th month it has been above the 50-point threshold that distinguishes growth from contraction.

The index had surged to 60.9 in August and has stayed above 60 through much of FY25. Based on responses from around 400 service sector firms, the survey reveals robust domestic and international demand, spurring companies to hire at the fastest pace in over two years.

Businesses were able to grow and generate demand despite facing sharp increases in wages and food costs, which were passed on consumers, the survey noted.