05.12.202307:26:00UTC+00Russian Service Sector Growth Eases In November

The Russian services activity expanded at the weakest pace in ten months amid a slower uptick in new orders, survey results from S&P Global showed on Tuesday.

The Manufacturing Purchasing Managers' Index, or PMI, dropped to 52.2 in November from 53.6 in October. However, a reading above 50 indicates expansion in the sector.

Despite solid growth, new business received by service providers in November was the weakest since May, as lower purchasing power among customers weighed on demand.

Meanwhile, foreign demand grew at a marked pace, and the rate of increase was among the steepest in over nine years of data collection for the series, with the upturn supported by strong demand from neighbouring countries.

On the price front, input price inflation was historically elevated as greater wage bills and supplier price rises put pressure on cost burdens. Selling price inflation was the softest since May amid efforts by firms to remain competitive and resistance among customers to further increases in prices.

Russian service providers raised their workforce numbers for the fourth successive month, but the rate of job creation was modest overall.

Service sector firms in Russia were optimistic about further improvements in demand conditions, marketing investments, and customer expansion in November.

The composite output index fell to 52.4 in November from 53.6 in October, signalling a slower rise in business activity across the private sector. The softer increase was attributed to weaker expansions at both manufacturers and service providers.