MOSCOW, Aug 3 (PRIME) -- Russia’s Services Manufacturing Purchasing Managers' Index (PMI) fell to 52.6 points in July from 55.5 points in June, still above a 50 point mark, which separates contraction of the economic activity from the increase, researcher IHS Markit said in a statement on Thursday.
“Business activity at Russian service sector firms continued to grow in July, although the pace of expansion slipped to the weakest since May 2016. In line with this, the latest upturn in new orders was modest and the softest since last October,” Markit said.
“Meanwhile, business confidence fell to the lowest level in 2017 so far, but remained robust overall. On the price front, both input and output price inflation were moderate in the context of the respective series histories despite accelerating. The pace of job creation and growth in backlogs were similar to those seen in June,” the statement read.
Manufacturing output growth was at a six-month high in July, but Markit’s Composite Index that covers both manufacturing and services fell to 53.4 in July from 54.8 in June.
“New orders received by Russian service providers grew at a modest pace in July, extending the current sequence of growth which began in February 2016. Anecdotal evidence suggested that increased client activity was behind the upturn. That said, the pace of the expansion was the weakest in nine months, with some panel members suggesting that there was a reduction in demand for their services,” Markit said.
Inflationary pressure was also moderate in July. The increase in cost burdens was attributed to higher input costs, “especially utility and outsourcing prices.” Although input price inflation accelerated to a three-month high, it remained below the long-run trend level, the researcher said.
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