Markit says Russia's Services PMI rises to 52.7 in January

MOSCOW, Feb 3 (PRIME) -- Russia's Services Purchasing Managers' Index (PMI) rose to 52.7 in January from 48.0 in December 2020, above the 50 no-change mark, which signals an overall expansion of activity in the sector, researcher Markit said on Wednesday.

“The seasonally adjusted IHS Markit Russia Services Business Activity Index registered 52.7 in January, up notably from 48.0 in December, to signal a renewed rise in output across the Russian services sector. The moderate increase in business activity brought to an end a three-month sequence of contraction. Anecdotal evidence suggested that the upturn was linked to greater client demand and higher new sales,” Markit said.

The data signaled the first expansion in new business since last September. Growth of new orders was moderate, and service companies linked the growth to stronger client demand. At the same time, new export orders have been falling for 11 months straight, but contraction dynamics were slowest over the past five months.

“Meanwhile, there was better news for company balance sheets, as the rate of input cost inflation softened to the slowest in six months. In order to continue driving new sales, the slower increase in input prices was passed through to clients as charges rose only marginally at the start of the year,” Sian Jones, economist at IHS Markit, said, as cited in the statement.

“At the composite level, January PMI data signaled a brighter start to 2021. Manufacturers and services providers recorded greater client demand and strong optimism, with cost pressures starting to abate,” Jones said.

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