BENGALURU, Nov 22 Reuters India39;s business activity rose at its fastest pace in three months in November, helped by an improving services industry and record job creation, but output inflation spiked to a near 12year high, a survey showed.

The findings are likely to add to economic growth in the ongoing festive quarter which is expected to pick up thanks to a rebound in private consumption, despite Asia39;s thirdlargest economy reporting its highest retail inflation in 14 months.

HSBC39;s flash India Composite Purchasing Managers39; Index, compiled by SP Global, rose to 59.5 this month from October39;s final reading of 59.1, taking the expansionary streak to 40 months.

The 50level separates growth from contraction.

Services saw a pickup in growth, while the manufacturing sector managed to outperform expectations despite a marginal slowdown from its October final PMI reading, noted Pranjul Bhandari, chief India economist at HSBC.

A PMI for the dominantservices sector rose to 59.2 from 58.5 last month, its highest since August. The manufacturing sector also continued to expand in November, although the pace slowed slightly and its index fell to 57.3 versus 57.5.

Overall domestic demand rose thanks to better sales in the services industry offsetting slower manufacturing orders growth, but overseas demand improved for both sectors with the latter39;s exports accelerating to a fourmonth high.

That boosted the business outlook for the coming year as overall optimism…