FX.co ★ Russia Services Activity Expands Most In 10 Months

The Russian service sector experienced accelerated growth in November, driven by an increase in new business fueled by strong demand, according to survey data from S&P Global released on Wednesday.

The Services Purchasing Managers' Index (PMI) rose to 53.2 in November, up from 51.6 in October. A reading above 50 signals expansion.

The rate of growth in output was the most rapid since January this year, the survey revealed.

New orders increased at their quickest rate in eight months, supported by a more favorable sales environment and the introduction of new service offerings.

Regarding pricing, input costs continued to rise sharply due to increased supplier, transportation, and wage expenses. However, the overall rate of cost inflation slightly decreased, and the inflation of selling prices eased to a three-month low.

Companies expanded their workforce numbers for the sixteenth consecutive month, though the pace of job creation slowed to the least since February.

Looking forward, firms remained optimistic about output prospects over the coming year, driven by expectations of strengthening demand conditions and investments in new service offerings.

The composite output index rose to 52.6 in November from 50.9 in October, indicating a strong and accelerated improvement in private sector business activity.