Russian services sector activity at 10-month low in April

MOSCOW: Russia's services sector activity slowed to a 10-month low in April, hit by a decline in new businesses growth, but business confidence picked up, the Markit purchasing managers index (PMI) showed on Monday.

The index's headline figure fell to 52.6 in April from 54.4 in March. It has stayed above the 50 mark that separates expansion from contraction since early 2016.

"Russian service providers signalled a noticeable slowdown in business activity growth in April," said Sian Jones, an economist at IHS Markit that compiles the survey.

The sector saw a slowdown in hiring in April, while the rate of cost inflation eased following a spike earlier this year triggered by a hike to value-added tax, the monthly survey showed.

"The moderate expansion eased following some reports of less robust domestic demand conditions. Conversely, new export sales rose at the fastest pace in the series history."

Meanwhile, business confidence among services sector companies jumped to its strongest since July 2011, the PMI report showed. Panellist attributed positive sentiment to new product launches, stronger demand conditions and increased marketing activity.

A sister survey showed late last month Russian manufacturing activity slowed in April because of falling employment and weaker expansion of new businesses.