BENGALURU, Nov 6 Reuters Growth in India39;s dominant services industry picked up last month after dipping to a 10month low rate in September amid a marked expansion in demand, according to a business survey that also showed the sector39;s workforce increased sharply.
That signaled a relatively strong start for Asia39;s thirdlargest economy in 202439;s final quarter and supports Reuters poll forecasts for 7.0 growth this quarter after 6.8 last quarter.
Services accounted for about 55 of gross domestic product GDP in fiscal year 202324, government data showed.
The HSBC final India Services Purchasing Managers39; Index, compiled by SP Global, rose to 58.5 in October from September39;s 57.7, exceeding a preliminary estimate of 57.9.
The index has been above the 50mark separating expansion from contraction for 39 consecutive months.
During October, the Indian services sector experienced strong expansions in output and consumer demand, as well as job creation, noted Pranjul Bhandari, chief India economist at HSBC.
Robust demand at home and overseas meant a reacceleration in the new business subindex and stronger exports to many regions including Africa, Asia, the Americas, the Middle East and Britain.
That induced services firms to hire additional staff, with the fastest rate of employment generation in 26 months. The business outlook for the coming year stayed positive owing to upbeat projections, but the index eased slightly from September.
Meanwhile, strong demand…