Business activity in the service sector in Russia is growing for the eighth month in a row
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At the end of September, the Russian service sector PMI index amounted to 55.4 points, decreasing from August 57.6 points, reported rating agency S&P Global. Experts said that strong growth in business activity in the sector will continue. This is the eighth consecutive month of growth.
An index value above 50 points indicates an increase in economic activity, below – a decline.
Production and new orders growth slowed last month, but overall growth remained strong due to a sustained increase in customer demand, according to a press release from S&P Global. New export orders grew at a record pace as new customers were attracted, but the pace of job creation slowed. It is noted that employment is growing for the second month in a row, albeit at an insignificant pace.
The aggregate production index, which tracks activity in the manufacturing and service sectors of the Russian Federation, amounted to 54.7 points in September compared to 55.9 points in August. “Output in the services sector increased for the eighth month in a row, with growth rates exceeding the average. Higher levels of activity are often associated with continued new business growth and sustained improvement in demand conditions,” S&P Global said.
Experts write that inflation pressures remained historically elevated in September. “According to the panellists, exchange rate weakness and price hikes by suppliers have led to rising raw material costs. The rate of commodity price inflation was the fastest since April 2022, while companies also reported an acceleration in collection growth to the highest level in 17 months,” the agency added.
Enterprise monitoring data published by the Central Bank showed some improvement in assessments of the state of the business climate in August (surveys were conducted September 1–12) after their deterioration in June-July. In particular, an improvement in the assessment of the current situation in mining and processing was noted.
Details – in the material “Kommersant” “Companies are expecting an increase in output and rising prices”.
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