India's service providers experienced a surge in demand during November, actively increasing their payrolls, although they faced price pressures in their operations, prompting higher costs for customers, as reported by S&P Global. The seasonally adjusted India Services purchasing managers index (PMI) reached 58.4 in November, a slight drop from 58.5 recorded in October, yet it remains significantly above the 50-mark that delineates growth from contraction.
The India service survey signified robust expansion that exceeded its average trend. Service managers encountered such intense demand in November that both permanent and temporary staff hiring reached peak levels, showcasing the strong growth within the sector. Despite this surge in hiring, inflation was also a notable factor for India's service sector in November.
The input costs escalated at the fastest pace in 15 months, primarily driven by increases in food and labor charges, while selling prices surged at the most rapid rate recorded in 12 years. Additionally, service providers noted substantial export sales, indicating gains from clients across Asia, Europe, Latin America, and the US.
Service managers expressed confidence about the upcoming year, anticipating sustained demand and new business driven by marketing efforts. The India Services PMI, compiled from surveys distributed to 400 service firms from November 11 to November 27, reflects the positive sentiment in the industry. Furthermore, the India composite PMI, which combines trends from the manufacturing and service sectors, clocked in at 58.6 in November, down slightly from 59.1 in October, also indicating a strong rate of expansion..