Russia Services Growth Remains Strong In September

(RTTNews) - The Russian service sector continued to grow at a solid pace in September, led by a further uptick in new business and sustained improvements in demand conditions, survey results from S&P Global showed on Wednesday.

The Services Purchasing Managers' Index, or PMI, dropped to 55.4 in September from 57.6 in the previous month. However, a reading above 50 indicates expansion in the sector.

Despite easing slightly, new orders grew at one of the strongest paces in the past year. Firms attributed the increase to sustained customer demand and an expansion in client bases.

Foreign demand was also robust in September, as the pace of expansion in export sales accelerated notably and was the sharpest on record.

Employment across the Russian service sector rose for the second month running, but at only a fractional pace.

On the price front, input price inflation remained historically elevated in September, linked to higher wage bills, greater costs to service loans, and exchange rate weakness. The selling price inflation was sharper than the series average, despite easing to a three-month low.

The composite output index decreased from 55.9 in August to 54.7 in September, signalling a strong upturn in business activity across the Russian private sector.