India’s services sector output growth touched a three-month high in November as business inflows rose markedly amid accommodative demand conditions, a monthly survey said on Monday.

The seasonally adjusted S&P Global India ServicesPMI Business Activity Index rose from 55.1 in October to 56.4 in November, indicating a sharp increase in output that was the quickest in three months even amid higher operating expenses.

Survey participants linked the latest expansion to demand strength, successful marketing and a sustained upturn in sales.

For the 16th straight month, the headline figure was above the neutral 50threshold. In PurchasingManagers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“Indian service providers continued to reap the benefits of strong domestic demand, with PMI data for the penultimate month of 2022 showing a faster increase in new business and output,” said Pollyanna De Lima, Economics Associate Director at S&P GlobalMarket Intelligence.

On the jobs front, sustained expansion in new work intakes and demand buoyancy continued to promote job creation in the service economy.

“Employment rose at a solid pace that was among the quickest in over three years,” the survey said.

On the prices front, services companies across India reported higher operating expenses.

In addition to greater transportation costs, firms reported higher prices for energy, food, packaging, paper, plastic and electrical products.

“Whilst on the whole the latest results are encouraging, the trend for inflation is somewhat concerning. Strong demand for services again boosted firms’ pricing power, with more companies transferring cost increase to their customers,” Lima said.