New Delhi, Oct 5 (IANS): India's September services output remained in expansion mode on the back of improved demand conditions as well as the receding impact of Covid 2.0, the IHS Markit India Services PMI showed on Tuesday.

"Companies indicated that greater footfall boosted sales and output in the latest month, with some taking on additional staff to cope with rising workloads," the PMI report said.

However, the output rate slowed down sequentially during the month under review.

The seasonally adjusted India Services Business Activity Index remained above the threshold 50 (index reading) mark. The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.

The September index reading came in at 55.2 in September from August's 18-month high of 56.7, but the latest reading remained well above its long-run average.

"Despite easing from August, the rate of expansion was marked and the second-fastest since February 2020."

"Buoyed by signs of improvements in underlying demand, Indian service providers took on additional staff during September."