Services PMI rises to over a decade high in Oct even as input costs rise

Activity in services, the biggest sector of India's economy, accelerated to a ten and a half-year high in October despite companies increasing the prices of their products due to expensive raw materials, showed IHS Markit Purchasing Mmanagers' Index (PMI) survey. Unlike their manufacturing counterparts, service companies hired more hands even as the rate of employment generation remained modest.

The index rose to 58.4 in October from 55.2 in September, clearly indicating that the third quarter of the current financial year may witness high economic growth.

According to respondents, ongoing improvements in demand boosted growth of sales and subsequently output. New