New Delhi, Oct. 6 -- India's services sector growth accelerated in September to its strongest pace in three months as domestic demand improved, though activity over the July-September quarter expanded at its slowest pace since early 2022, an HSBC survey showed.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August, remaining above the 50 mark that separates expansion from contraction. However, the average reading for the second quarter of the fiscal year was the weakest since the three months to March 2022.

The September improvement was supported by stronger new business, which rose at the fastest pace in three months. Finance and insurance, along with consumer services, re...