Markit: Russia’s Services PMI rises to 56.9 in October

MOSCOW, Nov 6 (PRIME) -- Russia’s Services Purchasing Managers’ Index (PMI) grew to 56.9 in October from 54.7 in September and remained above the 50 no-change mark, which means an overall expansion, research company Markit said on Tuesday.

Markit’s Russia Composite Output Index that covers both manufacturing and services sectors rose to 55.8 in October from 53.5 in September.

October data indicated a sharp increase in business activity across the Russian service sector, the report said. The rate of expansion accelerated amid a quicker rise in new business, with both increasing the most since November 2017.

Employment levels rose for the first time since May and the contraction in outstanding business eased to the weakest for three months.

“Russian service sector business activity growth continued to build momentum in October. Notably, output was driven by stronger domestic demand, with total new business rising at the quickest pace in close to a year. Capacity pressures became evident, with employment entering growth territory for the first time since May,” Sian Jones, economist at HIS Markit, commented on the survey.

“Meanwhile, rates of input cost and output price inflation accelerated, with former reading the second-fastest pace since March 2015. Encouragingly, demand conditions across the Russian economy strengthened in October. The IHS Markit Russia Composite Output Index signaled a sharp expansion that was the quickest in the year-to-date.”

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