India’s services sector growth improved in the month of October, recovering some of the growth momentum lost in September, as favourable demand for services continued to underpin increases in new business and output. The seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 55.1 in October from 54.3 in September. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- improved to 55.5 in October from 55.1 in September.
The report further noted that the domestic market was the main source of new business gains, as foreign sales decreased further at the start of the third fiscal quarter. Monthly deteriorations in international demand have been registered since the onset of COVID-19 in March 2020. However, Indian services companies reported greater operating expenses in October, stretching the current sequence of inflation to 28 months. The latest increase was the most pronounced since July and historically marked.
Concurrently, the rate of charge inflation ticked fractionally higher in October as companies sought to transfer cost increases to their clients. The upturn was strong in the context of historical data. Ongoing increases in new business and output requirements continued to support job creation in the service economy. Employment rose for the fifth month in a row and at the second-fastest pace in over three years (behind August). Besides, capacity pressures among services companies remained mild in October, as backlogs rose at a slight pace that was broadly similar to September.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: