Bikky Khosla | 08 Nov, 2022
activities gathered pace in October, driven by
robust domestic demand, as shown by the
Purchasing Managers’ Index (PMI) for services, which rose to 55.1. It was at
54.3 in September which was a six-month low. Increased hiring activities along
with new business gains contributed to this upturn. As a result, employment
also rose for the fifth month in a row. This is encouraging, particularly amid
A detailed look shows
that at the sub-sector level it was the consumer services that was the highest
contributor in terms of new orders, employment and business activity while
finance & insurance came in second place. It is also notable that while
domestic market was the main source of new business gains, monthly deterioration
in international demand was witnessed in October – a trend evident since the
onset of COVID-19 in March 2020.
to a latest
report for the October to December period, optimism is quite evident in the
Indian services sector with 73% of employers in the sector planning to increase
hiring during this period. It shows that IT sector led this optimism (96%),
followed by educational services (95%), e-commerce & allied start-ups
(92%), telecommunications (90%) and retail [essential] (79%). This hiring
intent is displayed not only by large (79%) and medium sized firms (45%) but
also by small firms (57%).
It is also encouraging that the country’s
manufacturing activities rose as well in October, with the S&P Global India
Manufacturing Purchasing Managers’ Index (PMI) rising to 55.3 in October from
55.1 in September.
In this sector too, employment rose significantly while factory
orders and production showed signs of recovery. According to the findings, the
sector is confident that production will rise by October 2023, driven by better
sales and marketing efforts.
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