India services growth hits 4-month high as domestic demand improves, PMI shows

India's dominant services sector expanded at its quickest pace in four months in October ​as improved domestic demand boosted new business, ‌although hiring turned subdued as international orders weakened, a survey showed on Wednesday.

HSBC's India Services Purchasing Managers' Index (PMI) (INPMIS=ECI), opens new tab ​rose to 55.8 from September's 55.2, but ​was below a preliminary estimate of 56.2. A reading ⁠above 50.0 shows growth.

New business - a key ​gauge of demand - increased at its fastest rate ​since June mainly because of strong domestic orders. However, international demand was muted, with growth in new export business matching ​its weakest pace in 45 months.

Employment growth ​almost stalled, with hiring matching the pace in June - the ‌slowest ⁠pace in 10 months.

Inflationary pressure weakened as prices charged to customers rose at their slowest in four months. Input cost inflation eased to its lowest ​rate in ​over six ⁠years although companies continued to report higher electricity, labour, raw materials and ​transportation costs.

Business confidence slipped from September and ​the ⁠index stayed below its long-run average, signalling cautious optimism about growth prospects.

The overall composite PMI index, which ⁠tracks ​both manufacturing and services, rose to ​its highest in four months reaching 56.2 in October from ​September's 55.9.