“In September, India’s services sector continued to experience robust growth, driven by strong demand, increased new business, and rising output volumes, as revealed by the S&P Global survey released on Thursday.
The seasonally adjusted S&P Global India Services PMI Business Activity Index climbed from 60.1 in August to 61.0 in September, indicating a significant increase in output, one of the strongest in over 13 years.
As workloads grew and capacities faced mild pressure, job numbers continued to rise at a historically high rate.
Service companies remained optimistic about their future activities, with sentiment reaching its highest level in over nine years, according to the survey.
The expansion in output in September was attributed to effective marketing, favorable demand conditions, and a strong influx of new business.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, commented on the results, saying, “The latest PMI results brought more positive news for India’s service economy, with September seeing business activity and new work intakes rising to one of the greatest extents in over 13 years. Besides domestic demand strength, firms noted higher international sales to Asia, Europe, and North America.”
“Moreover, an upturn in business optimism about the year ahead, fueled by buoyant demand conditions, bodes well for further growth across the service sector. Unsurprisingly, job creation was sustained as the business mood improved,” Lima added.
The latest data revealed a significant increase in new business placed with Indian service providers, the second-fastest since June 2010.
Anecdotal evidence indicated that market dynamics remained favorable, supporting demand. Advertising was also cited as a key factor boosting sales.”