Markit: Russia's Services PMI falls to 58.2 in August

MOSCOW, Sep 3 (PRIME) -- Russia's Services purchasing managers' index (PMI) fell to 58.2 in August from 58.5 in July, researcher Markit said on Thursday.

“The seasonally adjusted IHS Markit Russia Services Business Activity Index registered 58.2 in August, down slightly from 58.5 at the start of the third quarter. The upturn in business activity was sharp nonetheless, and the second-fastest since January 2017. Panelists attributed the rise in output to the resumption of client business and an associated increase in customer demand,” the report said.

August PMI data indicated a sharp, but slightly slower expansion in business activity in August. The steep upturn was supported by a marked increase in new orders. As a result, firms expanded their workforce numbers for the first time since February, albeit at only a fractional rate, as backlogs of work continued to fall.

At the same time, business expectations strengthened and reached a 10-month high amid hopes of an economic recovery.

“Russian service providers continued to see a steep upturn in business activity and new orders in August, largely aided by strong domestic client demand. New export business struggled again, as it fell for the sixth successive month amid challenging global demand conditions during the pandemic,” Sian Jones, economist at Markit, commented on the survey.

“At the composite level, private sector firms saw a boost to new business growth, as the rate of expansion quickened to the fastest since November 2018 amid a renewed rise in manufacturing client demand. That said, our current forecast signals that the economy is expected to shrink by just over 6% on the year in 2020, with the recovery forecast to be drawn out,” she added.

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