India's private sector activity expanded at the fastest pace in almost four years in October, as both services and manufacturing growth improved, survey figures from IHS Markit showed Thursday.
The Nikkei Composite Purchasing Managers' Index, rose to 55.4 in October from 52.4 in the September. Any reading above 50 indicates expansion in the sector.
The Services Business Activity Index also climbed to 54.5 in October from 52.0 in the preceding month.
New orders received by Indian service sector grew at a solid pace in October, underpinned by greater client requests and improved demand conditions. As a result, output growth accelerated during the month.
Manufacturing order books also rose at a quicker pace, with growth climbing to a 22-month high.
Employment level at both goods producers and service providers remained unchanged in October.
On the price front, input prices faced by services firms increased further in October, led by higher petrol prices. However, the rate of inflation softened.
Amid reports of efforts to attract new customers, selling prices were left unchanged by around 98 percent of firms. At the same time, factory gate charges climbed at the sharpest rate since April.
"Nonetheless, a healthy level of overall positive sentiment regarding future business opportunities was seen and, with competitive pressures offering just a minor bump in the road of confidence, the services economy looks set to maintain its strong performance in the near term," Pollyanna De Lima, economist at IHS Markit, said.
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