New Delhi, Nov. 4 -- India's services sector expanded at its fastest pace in four months in October, driven by stronger domestic demand and rising new business, although employment and export orders remained subdued.

The seasonally adjusted HSBC India Services PMI Business Activity Index increased to 55.8 in October from 55.2 in September, staying above the neutral mark of 50 and its long-run average.

Growth in new business drove higher output, with overall sales rising at their fastest pace since June. Survey respondents attributed the increase to favourable demand conditions, new client wins and successful advertising campaigns.

All four broad service categories recorded faster growth in output and new business. Finance and Insurance...