Oct 28 (Reuters) - Index provider MSCI ( MSCI ) reported

a rise in third-quarter profit on Tuesday, as improved client

spending drove up demand for its index products and analytics

services.

MSCI ( MSCI ) creates stock market indices that serve as benchmarks

for trillions of dollars in assets held by investment funds,

pension plans, and asset managers to measure performance and

guide investment decisions.

When MSCI ( MSCI ) performs well, it indicates healthy demand for

index-based investing and market data. Conversely, weak results

might signal an investor pullback or headwinds in the investment

management sector.

The data provider posted a profit of $325.4 million for the

quarter ending September 30, or $4.25 per share, compared with

$280.9 million, or $3.57 per share, a year earlier.

Recurring subscriptions in its index segment rose 8.3%

on-year to $242.6 million in the September quarter, driven by

growth from market-cap weighted index products.

This pushed total operating revenue nearly 9.5% higher to

$793.4 million, while higher asset-based fees also contributed.

U.S. markets have continued to swing higher as lower

interest rates and AI exuberance cloud investor anxieties over

labor market cracks and tariffs.

This marks a stark turnaround from April, when U.S.

President Donald Trump's erratic trade policy roiled markets

worldwide.

Operating expenses increased 7%, as the company spent more

on employee compensation and information technology.