November saw the fastest improvement in service sector performance since 2011

MUMBAI: After the manufacturing sector, November saw the country's service sector perform at a one-decade high. The strong recovery in the domestic sector last month was accompanied by strong recovery in domestic demand. This was stated in a private survey report.

The Purchasing Managers' Index (PMI) of the service sector, compiled by IHS Markets, stood at 8.10 in October and 6.10 in November. Thus, the figure has come down as compared to October, but this is the second highest figure since July 2011. The November service sector PMI has been the second highest in a decade, the survey report said.

A mark above 50 is said to be the development of the area. India, Asia's third-largest economy, has seen rapid economic growth due to the speed of vaccinations and rising government spending. In the September quarter, the country's economic growth rate was 4.50%.

The last nine years have seen the fastest expansion of new business in November, excluding October of the current year.

Confidence in companies is expected to continue rising, but concerns over inflationary pressures have shaken trade confidence, according to a report by IHS Markets.

Despite the steady rise in raw material prices since April, companies have not been able to pass on the full burden to consumers, which has put pressure on their margins. Prices have also slowed down in November compared to October.

Despite rising trade optimism, new recruits remain at a three-month low. Concerns have been raised that the Omicron variant will hit the economy one more time. The combined average index for the services and manufacturing sectors, which stood at 7.50 in October, has moved closer to a ten-year high with 7.30 in November. Given the strong performance of the services and manufacturing sectors, the GDP figures for the third quarter of the current financial year are expected to remain high.