New Delhi, Dec 3 (IANS): India's November services output remained in expansion mode on the back of improved demand conditions as well as receding impact of Covid 2.0, the IHS Markit India Services PMI showed on Friday.

However, the PMI eased 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 November index reading came in at 58.1 from October's 58.4.

"PMI data for November indicated that the Indian service sector continued to strengthen, with a substantial upturn in new orders underpinning output growth," the PMI report said.

"Although companies forecast higher business activity volumes over the course of the coming year, the expansion is expected to be restricted by price pressures.

According to PMI report, the monitored companies said that the upturn reflected sustained increases in new work and ongoing improvements in market conditions.

"New business received by service providers rose at a broadly similar rate to that recorded in October. Successful marketing, strengthening demand and favourable market conditions were among the reasons cited for sales growth."

"Although business confidence improved to a three-month high in November, the overall level of positive sentiment was well below its long-run average. Some companies expect demand to continue to trend higher, but several others were worried that elevated inflation could dampen the recovery."