Services activity grows for first time since Feb, PMI hits 54.1 in Oct

As in the manufacturing sector, employment declined for successive months in services sector too.

Services sector activity expanded in October for the first time since February, reflecting growth in demand as the government continued to relax Covid-19 restrictions, a report by IHS Markit said on Wednesday. 

The Purchasing Managers’ Index (PMI) rose sharply from 49.8 in September to 54.1 in October, with new orders to companies registering an increase over the previous month, reversing a trend that began eight months ago. A PMI index of more than 50 represents expansion, while a figure below 50 means a decline in activity from a month ago.

As the services sector, excluding construction, contributes nearly 60 per cent to