In November, India's services sector output growth reached a three-month high due to strong demand.

 

According to a monthly survey released on Monday, India's services sector output growth reached a three-month high in November as business inflows sharply increased amid accommodating demand conditions.

The S&P Global India Services PMI Business Activity Index increased from 55.1 in October to 56.4 in November after being seasonally adjusted, showing a significant increase in output that was the fastest in three months despite rising operating costs.

Participants in the survey attributed the most recent expansion to robust demand, successful marketing, and an extended upswing in sales.

The headline figure was above the neutral 50 threshold for the sixteenth consecutive month. A score above 50 on the Purchasing Managers' Index (PMI) indicates expansion, while a number below 50 indicates recession.

According to Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, "Indian service providers continued to reap the advantages of strong domestic demand, with PMI data for the penultimate month of 2022 showing quicker gain in new business and output."

Job growth in the service economy has been supported by ongoing increases in new work intakes and robust demand.

According to the study, "employment climbed at a steady pace that was among the fastest in over three years."

Services businesses all throughout India reported rising operational costs in terms of prices. Businesses reported higher pricing for energy, food, packaging, paper, plastic, and electrical products in addition to higher transportation expenses.