Russian Services Growth Strongest In 5 Months

(RTTNews) - The Russian service sector grew at its fastest pace in five months in August, boosted by stronger demand conditions, especially in the home market, survey results from S&P Global showed on Tuesday.

The Services Purchasing Managers' Index, or PMI, climbed to 57.6 in August from 54.0 in the previous month. A reading above 50 indicates expansion in the sector.

New orders increased for the seventh straight month in August, and at the fastest pace in just over three years, on the back of greater customer interest, boosted by domestic demand. Meanwhile, export orders showed a marginal increase.

On the price front, input prices rose at the joint-steepest rate in a year, linked to higher costs for suppliers and imported goods due to the aftermath of the recent depreciation of the Ruble and greater wage bills.

Consequently, the rate of output charge inflation accelerated for the third month, running to the fastest since May 2022.

In August, job growth was stronger than the series average due to capacity expansion by firms.

Nonetheless, service sector firms struggled to process incoming work in a timely manner, with the level of outstanding business rising at the sharpest pace on record.

The composite output index increased from 53.3 in July to 55.9 in August, signaling a significant uptick in private sector business activity supported by sustained increases in manufacturing and service output.