The seasonally adjusted index rose to 59.8 in November, signalling a “historically sharp” expansion in output that was faster than in the previous month, according to the report.
“Employment growth remained modest with most companies reporting no change in payroll numbers. Meanwhile, India's composite PMI remained strong, though it softened slightly to 59.7 in November, reflecting a slowdown in growth of factory production,” said Pranjul Bhandari, Chief India Economist at HSBC.
Growth of Indian services activity accelerated during November, after losing some momentum in October, boosted by a faster upturn in new business intakes. International sales continued to improve, though here the rate of expansion retreated to an eight-month low.
Underlying data showed that positive demand trends were supported by a general absence of price pressures, said the report.
“Indeed, demand for Indian services continued to strengthen as shown by another expansion in new business intakes. The rate of increase was sharp, quicker than in October and above its long-run average,” it added.
Where external sales rose, firms reported gains from Asia, Europe and the Middle East. Concurrently, panel member reports showed that fierce international competition and the supply of cheaper services elsewhere constrained growth.
The report further stated that although more jobs were added to India's service economy in November, the rate of expansion was moderate and broadly similar to those seen in the previous two months.
Firms still foresee output growth, however, with positive sentiment linked to favourable demand, a greater social media presence, marketing initiatives and plans to keep price increases to a minimum, it added.
The manufacturing sector eased in November, with the HSBC Manufacturing PMI at 56.6.
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