India's private sector growth hit a four-month high in October as services activity and new business strengthened, while price pressures eased, a private survey showed on Wednesday.

The HSBC India Composite Purchasing Managers' Index, compiled by S&P Global, expanded to 56.2 from 55.9 in September.

The services business activity index expanded to 55.8 from 55.2, a four-month high and above its long-run average. Manufacturing PMI eased to 54.7 from 55.1, but factory activity continued to expand.

Services' new business rose at the fastest pace since June, driven by favourable demand, new clients and advertising campaigns.

All four service-sector categories recorded faster growth in new business and output. Finance and insurance led both measures, while real estate and business services grew the slowest.

Domestic demand drove sales growth. New export business rose only marginally, at the weakest pace since February 2023.

Services input cost inflation eased to its lowest since August 2020, despite some firms reporting higher electricity, labour, raw material and transport costs.

Selling prices rose at the weakest pace since June, with fewer than 3% of firms raising charges to pass on higher costs.

Employment growth was marginal and slowed to its joint-weakest pace in the 10-month hiring sequence. Outstanding business fell for the third time in four months, suggesting spare capacity at some firms.

Business confidence weakened and remained below its long-run average, though service providers still expected output to rise over the next 12 months.

Composite new business grew at the fastest pace since June, but hiring softened, and firms were less optimistic than in September.

Across manufacturing and services, input cost inflation fell to an 11-month low, while selling price inflation eased to its lowest since February 2022.