FX.co ★ Russian Services Activity Signals Renewed Upturn In July

The Russian service sector saw a return to growth in July due to stronger demand, according to survey data from S&P Global released on Monday.

The Services Purchasing Managers' Index (PMI) rose to 51.1 in July, an increase from 47.6 in June. A PMI reading above 50 signifies expansion.

New orders expanded at the fastest rate in three months, driven by new client acquisitions and increased customer referrals. These factors prompted firms to hire more employees, with the rate of job creation climbing to its highest level since March.

On the pricing front, cost pressures intensified in July, as input price inflation accelerated to its fastest pace since January. This was attributed to higher supplier costs and wage increases, leading to the steepest rise in selling prices in six months.

Service providers remained optimistic about business activity for the next twelve months, with overall positive sentiment fueled by expectations of stronger demand and efforts to attract new customers.

The Composite Output Index, which measures overall private sector business activity, rose to 51.9 in July from 49.8 in June, indicating a return to growth in the Russian private sector.