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Upturn in Russia’s service sector eases during September

Staff Writer | October 7, 2016
The upturn in Russia’s service sector eased slightly in September, as the rate of business activity growth softened to a four-month low.
Russian service sector
Russian economy   Markit Russia Services PMI
Weaker rises in both new business and unfinished work were reported while job cuts were evident for the first time since June. Inflationary pressures weakened during the month, as both input cost and output prices rose at slower rates.

The headline seasonally adjusted Markit Russia Services Business Activity IndexT fell from August’s 53.5 to record 53.0 in September. The latest figure was the lowest since May but still pointed to a solid upturn in Russia’s service sector.

Moreover, output growth has now been recorded in each of the past eight months. Russia’s Composite Output Index remained in growth territory in September.

At 53.1, up slightly from 52.9 in August, the latest figure was indicative of a solid expansion in Russia’s private sector, and was driven by the fastest increase in production at manufacturers for 22-months.

New business intakes rose further in Russia’s service sector during September, lengthening the current sequence of growth to eight consecutive months. However, the latest expansion was the weakest in four months.

Where a rise in new work was reported, this was generally associated with stronger domestic demand.

Russian goods producers also recorded a solid rise in new orders during the month, with the rate of growth quickening to a three-month high.