Nikkei India Services PMI at 54.5 in October

India’s services activity has further picked up from its continuous expansion mode as it clocked a year high of 54.5 in the month of October rising from 52 achieved in September. This was the 16th month of continued expansion in services PMI.

A reading above 50 indicates economic expansion, while a reading below 50 points towards contraction.

Key highlights of the report were stronger increase in new business, underpinning sharper activity growth, input cost for service provider rising at a softer rate and unchanged selling prices.
 
Data for the month was also higher on the account of holiday season which led to more order inflows.
 
Manufacturing production also increased at a quicker rate, one that was the fastest in 46 months. Subsequently, the seasonally adjusted Nikkei India Composite PMI Output Index has risen from 52.4 in September to 55.4 in October. This pointed to a marked pace of expansion in private sector activity that was the quickest in nearly four years.
 
"The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy," said Pollyanna De Lima, economist at IHS Markit.