New Delhi : The service sector of the country has gained momentum in the last month. Along with this, another good news has been received that the activities of service sector which was at its lowest level in the month of September, has emerged to reach 58.5 in the month of October. Based on a monthly survey, it has been found that this has been supported by strong expansion in production and new business, due to which employment generation has also been boosted.
The seasonally adjusted HSBC India Services Business Activity Index stood at 58.5 in the month of October, compared to 57.7 in the month of September. In the language of Purchasing Managers Index or PMI, a score above 50 means expansion in activities and a score below 50 means contraction.
Strong expansion in consumer demand
HSBC India Chief Economist Pranjul Bhandari has said that India's service sector activity had recovered from its 10-month low in September to 58.5 last month. Indian services sector output and consumer demand expanded strongly in October, with employment generation hitting a 26-month high.
9 percent in the month of September
The latest data also underlined the growth of new export sales in India's services economy. Those surveyed attributed this to strong demand from customers in Africa, Asia, America, West Asia and the UK. Apart from this, about 13 percent of the people surveyed talked about employment creation, whereas in September this figure was 9 percent.
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boost employment growth
Meanwhile, the HSBC India Composite Production Index rose to 59.1 in October from 58.3 in September. New business flows grew at a rapid pace in both the manufacturing and services sectors, boosting sales and employment growth at the overall level.
What is PMI?
Purchasing Managers Index or PMI is an economic indicator consisting of monthly reports and surveys of private sector manufacturing firms. The index surveys product managers, who are individuals who purchase materials needed to manufacture a company's products.
(with agency input)
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