India’s private sector activity expanded strongly in October, driven by the growth in service sector, while expansion of manufacturing production faded, survey figures from Nikkei and Markit Economics showed Wednesday.
The seasonally adjusted Nikkei Composite Output Index rose to 52.6 in October from 51.5 in the previous month. Any reading above 50 indicates expansion in the sector. Moreover, the latest rate of increase was the joint-fastest since March.
The Services Business Activity Index climbed to an eight-month high of 53.2 in October from 51.3 in September.
New business inflows received by the Indian service sector grew at the fastest pace since February on improving demand conditions. Manufacturing new orders also rose, albeit at the weakest pace in the current 24- month sequence of expansion.
Employment level in the service sector showed no variations in October. Meanwhile, goods producers signalled higher staffing numbers, but the rate of job creation was only marginal.
On the price front, input prices climbed in October amid report of higher prices paid for petrol and food. Input costs at manufacturers rose for the first time in three months in October.
Services companies reduced their selling prices for the second consecutive month in October, mainly due to their efforts to improve competitiveness. In contrast, goods producers raised their output charges.
The material has been provided by InstaForex Company – www.instaforex.com