By Anant Vijay Kala

NEW DELHI--A gauge of services activity in India bounced back in October as stronger demand helped boost new orders, although employment stagnated, a survey showed.

The seasonally adjusted India Service Sector Business Activity Index rose to 54.5 from 52.0 in September, according to survey results released by IHS Markit and Nikkei Thursday. A figure above 50 indicates expansion, while one below that level signals contraction.

September's reading had cooled off from an over three-year high in August.

"The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy," Pollyanna De Lima, an economist at IHS Markit said in a statement.

A survey released Tuesday showed manufacturing activity hit a 22-month high last month, underscoring an across-the-board strengthening in the South Asian economy.

But despite the robust performance, employment levels at services as well as manufacturing firms remained stagnant in October, suggesting businesses could still be uncertain about whether the improvement in demand would sustain.

Write to Anant Vijay Kala at anant.kala@wsj.com

(END) Dow Jones Newswires

November 03, 2016 01:40 ET (05:40 GMT)

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