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Russian services sector expands for fifth month running, PMI shows
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(Reuters) – Activity across Russia’s services sector expanded for a fifth month running in November and at its fastest pace since January, a
(Reuters) – Activity across Russia’s services sector expanded for a fifth month running in November and at its fastest pace since January, a business survey showed on Wednesday, driven by a rise in new orders.
The S&P Global Purchasing Managers’ Index for Russian services rose to 53.2 in November from 51.6 in October, moving further above the 50 mark that separates growth from contraction.
New export business returned to growth in November and employment in the sector rose for a 16th consecutive month
Russia is grappling with persistent inflation and has seen a marked depreciation of the rouble in recent weeks. Firms noted a marked increase in cost burdens.
“The rise in input prices was linked to higher supplier, transportation and wage costs, with some also mentioning that unfavourable exchange rate movements pushed purchase prices up,” S&P Global said.
Companies faced renewed pressure on capacity, with backlogs of work increasing for the first time in eight months, albeit marginally.
Business confidence among Russian service providers improved, with firms expressing optimism about future output.
A sister survey published on Monday showed that activity across Russia’s manufacturing sector increased marginally in November, thanks to growth in output and new orders even as firms cut workforce numbers.
(Reporting by Alexander Marrow; Editing by Christina Fincher)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Currency depreciation refers to a decrease in the value of a currency relative to other currencies, often leading to increased costs for imports.
Economic growth is an increase in the production of goods and services in an economy over a period, typically measured by GDP.
New orders refer to requests for goods or services that businesses receive, indicating demand and potential future sales.
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