India’s services activity remains strong in Sept, firms hire more employees

India’s services industry expanded for a second straight month in September, bolstered by improved domestic demand and easing Covid-19 restrictions, pushing firms to hire more employees for the first time in nearly a year, a private survey showed.

The IHS Markit Services Purchasing Managers’ Index eased to 55.2 in September from August’s 18-month high of 56.7, but stayed comfortably above the 50-mark separating growth from contraction.

“Indian companies continued to benefit from a recovery in demand as the pandemic receded further and restrictions were lifted,” said Pollyanna De Lima, economics associate director at IHS Markit.