New Delhi, Oct 6 (IANS): Reopening of business units amid relaxed lockdown rules has led to a broadly stable output across India's service sector in September.

Accordingly, the seasonally adjusted India Services Business Activity Index rose for the fifth straight month in September, from 41.8 (index reading) in August to 49.8.

"The latest reading was indicative of broadly stable output across the sector. Monitored companies that observed growth commented on the reopening of business units amid the loosening of lockdown rules," the IHS Markit said in the PMI report.

"Firms that reported a contraction mentioned the damaging impact of the pandemic on demand."

Consequently, following contractions in each of the previous five months, private sector activity in India expanded during September.

The upturn was supported by the sharpest increase in manufacturing production in close to 13 years and a stabilisation of services activity.

Resultantly, the Composite PMI Output Index signalled a marked rate of activity growth across the private sector economy, rising from 46 in August to 54 .6.

"There was also a renewed increase in aggregate new orders, the first since February.

"Growth was centred on the manufacturing industry as service provide rs continued to record a fall in new work intakes," it said.