India Services Growth Hits Four Month High in October

India’s services sector grew at its fastest pace in four months in October, as stronger domestic demand lifted new business while export-order growth and hiring weakened, according to the HSBC India Services Purchasing Managers’ Index (PMI). The services PMI rose to 55.8 from 55.2 in September. Readings above 50 indicate expansion. The finalized figure was below a preliminary estimate of 56.2, but marked the sector’s strongest growth since June. The survey found that new business increased at its fastest rate since June, driven mainly by domestic orders. Growth in new export business, by contrast, matched its weakest pace in 45 months. The results point to a widening difference between demand at home and abroad, though the PMI is a survey indicator rather than a direct measure of the entire economy. Hiring nearly stalled in October, with employment growth matching its slowest pace in 10 months. The survey also indicated that service providers reduced unfinished business for the third time in four months, though that finding was reported in one account of the results. Cost pressures eased. Input-cost inflation fell to its lowest rate in more than six years, while prices charged...