Russia’s services sector growth accelerates in November, PMI shows

MOSCOW: Russia’s services sector experienced a resurgence in growth in November, driven by a renewed increase in new orders, a survey showed on Wednesday.

The seasonally adjusted S&P Global Russia Services PMI Business Activity Index rose to 52.2 in November, up from 51.7 in October, indicating a modest uptick in output levels.

PMI readings above 50 signal growth, while those below indicate contraction.

The rise in the index marks the fastest growth in six months, supported by stronger demand conditions and the end of four straight months of contraction in new business.

“The upturn in output was driven by a renewed expansion in new business in November,” the report said.

The increase in new orders placed pressure on capacity, however, with work backlogs rising at their sharpest rate since June.

This prompted companies to increase staffing levels, though the rate of job creation slowed to a four-month low.

Inflationary pressures eased, with input costs and output charges rising at softer rates compared to previous months.

Firms attributed higher selling prices to the pass-through of increased costs to clients.

Looking ahead, Russian service providers expressed expectations for stronger output over the coming year, driven by plans to launch new products and enhance customer outreach.

However, the degree of confidence remained historically muted, despite an improvement from October’s 34-month low.

The broader Russian private sector saw little change, with the Composite PMI Output Index at 50.1, indicating stagnation as gains in services were offset by a decline in manufacturing production.