Activity in the services sector remained strong in July, though it expanded at a slightly slower pace than in June, driven by robust demand and investment in technology, a survey revealed on Monday.

The seasonally adjusted HSBC India Services Business Activity Index stood at 60.3 in July, marginally down from 60.5 in June. In PMI terms, a reading above 50 signifies expansion, while a score below 50 indicates contraction.

“Looking ahead, services firms remained optimistic about the outlook for the year ahead,” said Pranjul Bhandari, chief India economist at HSBC.

New export orders grew at the third-strongest pace since the series began in September 2014, reflecting increased global demand for Indian services, amid rising export orders from countries, including Austria, Brazil, China, Japan, Singapore, the Netherlands and the US.

Favourable economic conditions and positive output expectations supported recruitment among services firms, according to the survey.