Markit says Russia's Services PMI rises to 57.5 in May

MOSCOW, Jun 3 (PRIME) -- Russia's Services Purchasing Managers' Index (PMI) rose to 57.5 in May from 55.2 in April, staying above the 50 no-change mark, which signals an overall expansion of activity in the sector, researcher IHS Markit said in a statement on Thursday.

“The seasonally adjusted IHS Markit Russia Services Business Activity Index registered 57.5 in May, up from 55.2 in April, to signal the sharpest upturn in business activity for nine months. Output expanded for the fifth month running, with firms often stating that stronger client demand supported growth,” Markit said.

New orders rose at a marked rate during May, as greater confidence among customers was reflected in a boost to spending. The rate of growth in new order inflows was the quickest since August 2020, the researcher said. The reopening of sections of the economy and expansion of operations at service sector companies reportedly supported new sales growth.

Russian service sector firms registered a fourth straight monthly rise in employment in May. The pace of job creation picked up to the sharpest since February 2018, as firms increased workforce numbers to support to processing of new order inflows.

“The Russian service sector posted a strong expansion in May, with rates of growth in output and new orders quickening. Although the expansion in exports waned slightly, domestic demand supported the upturn in total sales,” Economist Sian Jones was quoted as saying.

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