MCQ Test: India's Services Sector Growth Slows to Five-Month Low in October Amid Competitive Pressures and Heavy Rains

1. What does the HSBC India Services Business Activity Index primarily indicate?

A) The health of India's manufacturing sector. B) The growth momentum of India's services sector. C) The overall inflation rate in India. D) The balance of trade for services.

2. How did India's dominant services sector perform in October 2025 compared to recent months?

A) It accelerated to its fastest pace of expansion. B) It maintained a consistent growth momentum. C) It witnessed a significant deceleration, recording the slowest expansion in five months. D) It entered a phase of contraction for the first time in a year.

3. In the context of the HSBC India Services Business Activity Index, what does a reading above the 50-point threshold signify?

A) A phase of economic contraction. B) A period of robust expansion. C) Stagnation in economic activity. D) High inflationary pressures.

4. Which of the following factors were cited as primary reasons for the moderation in India's services sector growth during October 2025?

A) Increased government spending and tax incentives. B) Heightened competitive pressures and disruptions from heavy rainfall. C) A decline in international demand for Indian services. D) Reduced input costs and stable output charges.

5. What positive trend was observed regarding inflationary pressures within the services sector in October 2025?

A) Input costs and output charges rose at their fastest pace in over a year. B) Inflationary pressures eased considerably, with costs rising at their slowest pace in months. C) Inflationary pressures remained unchanged from the previous month. D) The sector experienced deflation for the first time in two years.

6. What were the contributing factors to the easing of inflationary pressures in the services sector during October 2025?

A) Increased government subsidies and reduced consumer demand. B) Global economic slowdown and reduced oil prices. C) GST reforms and favorable supply conditions. D) Higher interest rates and tighter monetary policy.

7. How did employment growth in India's services sector fare in October 2025?

A) It saw a significant surge, reaching a new high. B) Companies continued to recruit, but the pace of growth was one of the softest in 18 months. C) Employment contracted for the first time in two years. D) It remained stagnant with no new recruitment.

8. What does the HSBC India Composite PMI Output Index combine to reflect broader economic activity?

A) Only services sector activity. B) Only manufacturing sector activity. C) Both manufacturing and services sector activity. D) Agricultural and industrial output.

9. What was the implication of the HSBC India Composite PMI Output Index falling in October 2025?

A) It indicated a strong acceleration in overall economic growth. B) It suggested a broader moderation in overall economic activity, though still expansionary. C) It confirmed India's entry into an economic recession. D) It highlighted a shift from services-led to manufacturing-led growth.

10. Which statement accurately reflects the business confidence in India's services sector during October 2025?

A) Business confidence declined significantly due to competitive pressures. B) Firms expressed strong optimism about increased production over the next 12 months. C) Business confidence remained neutral, awaiting further economic indicators. D) Firms were pessimistic about future growth prospects.

11. How did new business inflows for the services sector in October 2025 compare to previous months?

A) They expanded sharply at their fastest rate ever. B) They continued to expand sharply, but the rate of increase was the weakest in five months. C) They contracted for the first time in the current financial year. D) They remained flat, showing no change from September.

12. What was the trend for international demand for Indian services in October 2025?

A) It experienced a significant decline, indicating global economic weakness. B) It improved, but the growth rate was the slowest since March. C) It remained robust, showing consistent strong growth. D) It showed no change compared to the previous month.

ALL TN Comp Exams Prep

India's Services Sector Growth Slows to Five-Month Low in October Amid Competitive Pressures and Heavy Rains

Your Score: 0 / 0

1. What does the HSBC India Services Business Activity Index primarily indicate?

2. How did India's dominant services sector perform in October 2025 compared to recent months?

3. In the context of the HSBC India Services Business Activity Index, what does a reading above the 50-point threshold signify?

4. Which of the following factors were cited as primary reasons for the moderation in India's services sector growth during October 2025?

5. What positive trend was observed regarding inflationary pressures within the services sector in October 2025?

6. What were the contributing factors to the easing of inflationary pressures in the services sector during October 2025?

7. How did employment growth in India's services sector fare in October 2025?

8. What does the HSBC India Composite PMI Output Index combine to reflect broader economic activity?

9. What was the implication of the HSBC India Composite PMI Output Index falling in October 2025?

10. Which statement accurately reflects the business confidence in India's services sector during October 2025?

11. How did new business inflows for the services sector in October 2025 compare to previous months?

12. What was the trend for international demand for Indian services in October 2025?

India's Services Sector Growth Slows to Five-Month Low in October Amid Competitive Pressures and Heavy Rains

Your Score: 0 / 0

1. What does the HSBC India Services Business Activity Index primarily indicate?

2. How did India's dominant services sector perform in October 2025 compared to recent months?

3. In the context of the HSBC India Services Business Activity Index, what does a reading above the 50-point threshold signify?

4. Which of the following factors were cited as primary reasons for the moderation in India's services sector growth during October 2025?

5. What positive trend was observed regarding inflationary pressures within the services sector in October 2025?

6. What were the contributing factors to the easing of inflationary pressures in the services sector during October 2025?

7. How did employment growth in India's services sector fare in October 2025?

8. What does the HSBC India Composite PMI Output Index combine to reflect broader economic activity?

9. What was the implication of the HSBC India Composite PMI Output Index falling in October 2025?

10. Which statement accurately reflects the business confidence in India's services sector during October 2025?

11. How did new business inflows for the services sector in October 2025 compare to previous months?

12. What was the trend for international demand for Indian services in October 2025?

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