India’s services sector reported growth on a monthly basis in October egged on by domestic demand amid high inflation that led to the second fastest hiring pace in over three years, a private survey showed.

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, remaining above the 50-mark that separates expansion from contraction for the fifteenth month.

“The October results show us that service providers had no trouble securing new work in October, despite lifting their charges again. Hence, the sector remained firmly inside expansion territory as business activity and payroll numbers were raised to support strengthening demand,” Pollyanna de Lima, economics associate director at S&P Global Market Intelligence, said.

According to the survey, the domestic market was the main source of business gains as foreign sales decreased further at the start of the third fiscal quarter. “Monthly deteriorations in international demand have been registered since the onset of Covid-19 in March 2020,” it noted.

Ongoing increases in new business and output requirements continued to support job creation. Employment rose for the fifth month in a row and at the second-fastest pace in more than three years.

Overall, confidence was at its highest level in just under eight years.