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Russian services expansion loses momentum in September - PMI

Published 05/10/2020, 07:31
Updated 05/10/2020, 07:35
© Reuters. A general view shows residential buildings in front of the Moscow International Business Center, also known as "Moskva-City", in Moscow

MOSCOW (Reuters) - Russian service sector activity grew in September, though at a slower rate than in August, as the economic recovery after coronavirus lockdowns lost some momentum, a business survey showed on Monday.

The Markit Purchasing Managers' Index (PMI) of services companies fell to 53.7 in September from 58.2 in August, but stayed above the 50 mark that denotes growth in activity.

"Slower output growth was linked to softer expansions in client demand, as new export orders weighed further on total sales," said Sian Jones, an economist at survey compiler IHS Markit.

"Subdued business confidence also dragged on hiring, as service sector employment showed a renewed decline."

September marked the third consecutive monthly expansion in business activity in Russian services. The sector returned to growth in July after four months of contraction.

However, business confidence fell to a three-month low and firms reduced their workforce numbers. New business from abroad fell for the seventh month running, and at a solid pace.

© Reuters. A general view shows residential buildings in front of the Moscow International Business Center, also known as

A separate survey last week showed Russian manufacturing activity slipping into contraction after just one month of growth, hit by a fall in new orders.

 

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