Russian Services Sector Growth Slows in September, S&P Global PMI Shows
The latest business survey reveals a slower pace of growth in Russia's services sector in September, with a weaker rise in demand impacting output. The S&P Global Purchasing Managers' Index for Russian services dropped to 50.5 from 52.3 in August, indicating only a marginal increase in output. Inflationary pressures led to higher costs being passed on to customers, resulting in a significant uptick in selling prices.
Moreover, the survey highlighted a moderation in hiring efforts, with job creation slowing to its weakest level since February. While new orders continued to increase for the third consecutive month, the pace of growth was slower compared to August. Despite some instances of a slowdown in client activity, business confidence received a boost from planned investments in advertising and expectations of greater new orders.
On the flip side, a sister survey showed that Russia's manufacturing sector contracted for the first time in over two years in September, driven by declines in output levels, new orders, and employment.
In conclusion, the data suggests a mixed outlook for Russia's economy, with the services sector facing challenges amidst inflationary pressures and slowing demand. Investors and individuals should monitor these trends closely as they could have implications for investment decisions and financial planning.