Services sector activities improved further and touched a five-month high in April driven by a surge in incoming work orders that boosted business activity and supported a renewed increase in employment, according to a survey.

The seasonally adjusted S&P Global India Services PMI Business Activity Index jumped to 57.9 in April from 53.6 in March, highlighting a sharp rate of expansion that was the fastest since last November amid mounting price pressures.

For the ninth straight month, the services sector witnessed an expansion in output. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“In isolation, the PMI data for the services sector were mostly encouraging, as surging demand underpinned quicker increases in new business inflows and output,” said Pollyanna De Lima, economics associate director at S&P Global.

The Indian services sector growth continued to gain momentum amid a near-record upturn in input costs. Companies also resumed their hiring efforts in April, as seen by the first increase in employment since last November.

Those firms that took on extra staff linked the rise to ongoing growth of new business, the survey said. Selling prices rose at the fastest rate since July 2017 and inflation concerns continued to dampen business confidence, the survey noted.

“Service providers reported having paid more for food, fuel and materials, with some mentions of higher wage costs also pushing up overall expenses. The overall rate of inflation quickened to the second-highest in the survey history, leading companies to hike their selling prices to the greatest extent in close to five years,” Lima added.

Companies also resumed their hiring efforts in April, as seen by the first increase in employment since last November. Those firms that took on extra staff linked the rise to ongoing growth of new business, the survey said.