Services activity in April experienced one of the fastest growth rates in 14 years on a monthly basis on the back of robust expansion of new business and output, a monthly survey released on Monday said.

The seasonally adjusted HSBC India Services Business Activity Index, though, dipped from 61.2 in March to 60.8 in April.

Survey respondents attributed this ongoing growth in output to favourable economic conditions, robust demand and increasing intake of new projects.

In the lexicon of the Purchasing Managers’ Index (PMI), a score above 50 indicates expansion, while a score below 50 signals contraction.

Pranjul Bhandari, chief India economist at HSBC, remarked, “India’s service activity expanded at a slightly slower pace in April, driven by a further increase in new orders, particularly from the domestic market.”

Alongside buoyant domestic demand, companies reported new business gains from various global regions, resulting in the second-fastest growth in international sales since September 2014.

Regarding employment, some service providers in India exhibited a greater interest in hiring in April, spurred by rising inflows of new business. However, many companies indicated that their current staff levels were sufficient, leading to marginal job creation, softer than the previous fiscal year’s end.

“In response to heightened new orders, businesses expanded their workforce, albeit at a slower pace,” noted Bhandari.