Published : 5 days ago, on 04/12/2024

(Reuters) – Activity across Russia’s services sector expanded for a fifth month running in November and at its fastest pace since January, a business survey showed on Wednesday, driven by a rise in new orders.

The S&P Global Purchasing Managers’ Index for Russian services rose to 53.2 in November from 51.6 in October, moving further above the 50 mark that separates growth from contraction.

New export business returned to growth in November and employment in the sector rose for a 16th consecutive month

Russia is grappling with persistent inflation and has seen a marked depreciation of the rouble in recent weeks. Firms noted a marked increase in cost burdens.

“The rise in input prices was linked to higher supplier, transportation and wage costs, with some also mentioning that unfavourable exchange rate movements pushed purchase prices up,” S&P Global said.

Companies faced renewed pressure on capacity, with backlogs of work increasing for the first time in eight months, albeit marginally.

Business confidence among Russian service providers improved, with firms expressing optimism about future output.

A sister survey published on Monday showed that activity across Russia’s manufacturing sector increased marginally in November, thanks to growth in output and new orders even as firms cut workforce numbers.

(Reporting by Alexander Marrow; Editing by Christina Fincher)