Oct services growth fastest in a year: HSBC

Oct services growth fastest in a year: HSBC

Mumbai: Business activity among India’s services firms rose to its highest in more than a year in October as new work orders, activity and employment expanded at faster rates, a survey showed on Wednesday.

The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to a 13-month peak of 56.78 in October after having dropped to a three-month low of 54.37 in September.

The index has been above 50, which separates expansion from contraction, for six months. Before that, it shrank for six months, hitting a trough of 40.3 in February.

“At 56.8, the fairly brief history of this series suggests the service sector could be registering double-digit real growth in the not too distant future, compared with 7.7% in the April-June quarter," said Robert Prior-Wandesforde, senior Asian economist at HSBC. “A strong rise in the expectations index, to what is now a very high level, also bodes well and it is good to see more employers planning to hire."

The business expectations sub-index recorded its fastest expansion since March 2008, at 79.47 in October, compared with 74.82 in September.