NEW DELHI: Activity in the country’s service sector rose to a 10-month high in June as new orders increased and overseas demand strengthened, leading to job creation in the sector, a survey showed on Thursday.The HSBC India Services PMI business activity index, based on a single question asking how the level of business activity compares with the situation in the month before, rose from 58.8 in May to 60.4 in June. Companies linked the upturn to positive demand trends and ongoing improvements in sales.The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 service sector companies. Overseas demand particularly improved from the Asian, West Asian and US markets, according to survey participants. “New export orders also expanded, albeit at a softer pace. Margins improved as the rise in input costs was below that seen for output charges. Service providers remained optimistic about future growth, though their confidence faded a tad,” said Pranjul Bhandari, chief India economist at HSBC.Data indicated that expansions in output and new orders remained broad-based during June. Finance and insurance topped the growth rankings. For both measures, the slowest expansions were in real estate and business services.The survey showed that ongoing expansion of service sector had a positive impact on jobs. Employment rose for 37th consecutive month in June, with the rate of job growth outpacing its long-run average, despite slowing from May’s record.