PMI survey: India's services sector recovers growth momentum in October

Activity in India's dominant services industry gathered pace in October even as inflationary pressures gather pace, according to a private survey.

Underpinned by robust domestic demand, the S&P Global India services Purchasing Managers' Index edged up to 55.1 in October from September's six-month low of 54.3.

The reading beat the Reuters poll expectation for 54.6 and remained above the 50-mark that separates expansion from contraction for a fifteenth month.

That marked the longest stretch of growth since October 2016.

Job creation in the services sector ticked up and business expectations were at an almost eight year high.

Ongoing increases in new business and output requirements continued to support job creation in the service economy, according to the survey.

Inflation in India has been hovering above the Reserve Bank of India's (RBI) target range of 2%-6% since the start of this year.

The RBI has raised its key interest rate by 190 basis points since May to reduce price pressures and hold up a tumbling currency.

The overall S&P Global India Composite PMI Output Index rose to 55.5 from 55.1 in September as activity in both manufacturing and services remained strong.