Russia Services PMI climbs to 52.3 in Aug from 51.1 in July - S&P Global

MOSCOW. Sept 4 (Interfax) - The Russia Services PMI rose to 52.3 points in August from 51.1 points in July, S&P Global research data show.

The latest data point to the fastest growth of activity in the sector since January 2024 amid stronger customer demand and growth of new orders, the report said.

The Russia Composite Output Index, which tracks activity in both the services and manufacturing sectors, rose to 52.1 points in August from 51.9 points in July.

Index readings above 50.0 points indicate growth in business activity, while those of less than 50.0 show a decline.

S&P Global said new orders rose the fastest since March in August. In response, Russian service providers registered a thirteenth successive monthly rise in employment in August with job creation largely attributed to the hiring of full-time workers amid greater business requirements.

Greater workforce numbers contributed to the further depletion of backlogs with the level of incomplete business falling for the fifth month running and at the fastest rate since the start of 2023.

Russian service providers recorded a robust rise in cost burdens during August linked to higher supplier prices and wage bills, however the pace of the increase eased to the slowest since May.

Output charges increased but at a softer pace. Although firms sought to pass through higher costs to customers, the rate of selling price inflation was the slowest since April.

Business expectations at service sector firms improved from July. Companies anticipate greater activity over the coming year amid plans to spend more on advertising and recruit and train more workers.