Russia Service Sector Expands In September

(RTTNews) - Russia's service sector activity returned to growth territory in September, though the rate of expansion was only marginal amid a slower rise in new orders, survey data from S&P Global showed on Wednesday.

The seasonally adjusted services Purchasing Managers' Index, or PMI, rose to 51.1 in September from 49.9 in August.

Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

New orders increased at the slowest pace in the current four-month sequence of expansion. Client demand remained domestic focused as sanctions continued to restrict demand from external customers.

Service providers reduced their workforce numbers for the second successive month, in line with relatively muted demand conditions. Backlogs of work declined further amid reports of excess capacity.

On the price front, input prices again rose sharply in September, though the rate of inflation was the slowest in a year. Meanwhile, the selling price inflation accelerated to a four-month high.

On the back of improved client demand, expectations for the coming year's activity were the second-strongest since February.

Data also showed that the composite PMI Output index climbed to 51.5 in September from 50.4 in the previous month.