India's service activity picks up pace in October

NEW DELHI: India's service activity gained momentum in October led by an upturn in incoming new business, a private survey showed on Thursday.

The Nikkei India Services Business Activity Index rose to 54.5 in October after it dropped to 52 in September.

A reading above 50 on the index indicates economic expansion while a figure below that indicates contraction.

"The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India’s economy ," said Pollyanna De Lima, Economist at Markit and author of the report.

Data released by the same agency on Tuesday had showed a remarkable improvement in manufacturing activity with PMI touching its 22 month high of 54.4.

Overall, the seasonally adjusted Nikkei India Composite PMI Output Index rose to 55.4 from 52.4 in September.

"This pointed to a marked pace of expansion in private sector activity that was the quickest in nearly four years," the survey showed.

For the long term, De Lima guided that the services economy looks set to maintain its strong performance .