New Delhi, June 4 -- India's services sector output rose to a three-month high in May, driven by strong export growth, even as the pace of new business and activity remained largely unchanged from levels in the previous three months.

The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, edged up to 58.8 in May from 58.7 in April and 58.5 in March, staying well above the 50-mark that indicates expansion. However, it was still below February's 59.

Employment rose by a record as companies scaled up operations to match sustained growth in sales, the latest survey showed. Price indicators pointed to stronger inflation in input costs and output charges, with both rising above their historical average...