New export business boosts Russia’s service sector in August, PMI shows
2024.09.04 02:33
(Reuters) – Activity across Russia’s services sector grew at its fastest pace in seven months in August, a business survey showed on Wednesday, boosted by a sharp expansion in new export business.
The S&P Global Purchasing Managers’ Index for Russian services rose to 52.3 in August from 51.1 in July, moving further above the 50 mark that separates expansion from contraction.
Activity in Russia’s manufacturing sector has largely been built on domestic demand since Western capital and companies left Russia in response to its February 2022 invasion of Ukraine.
But export orders in the services sector have largely remained resilient. The expansion in August was the second largest since the start of the war.
“Greater demand from new and existing clients in key export markets reportedly drove the latest upturn,” S&P Global said.
Service providers registered a 13th successive month of job creation, S&P Global said, as new orders increased.
Firms remained confident that output would rise over the coming year.
“Alongside increased spending on advertising, firms hope that greater staffing numbers and training will help boost business activity,” S&P Global said.
A sister survey published on Monday showed that activity in Russia’s manufacturing sector grew at its slowest pace in over a year in August, as expansion in output, new orders and employment all eased.
