PMI in Russia's services sector rises to 51.6 in Oct from 50.5 in Sept - S&P Global

MOSCOW. Nov 6 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's services sector rose to 51.6 points in October from 50.5 points in September, S&P Global research data show.

The latest data indicate modest, yet solid growth in the sector.

The Russia Composite Output Index, which tracks activity in both the services and manufacturing sectors, increased to 50.9 points in October from 49.4 points in September.

Index readings above 50.0 points indicate growth in business activity, while those below 50.0 indicate a decline.

New orders rose for the fourth consecutive month in October on the back of acquiring new customers, as well as improved conditions for demand, though the pace of growth slowed.

Companies reported sharp rises in costs at the start of the fourth quarter, with cost inflation growing at the fastest pace since July. Respondents cited unfavorable exchange rates, higher supplier prices, and higher payroll bills as factors that negatively affected operating expenses.

Service companies raised their respective selling prices at a quicker pace last month amid profitability under pressure and demand improving, with the pace of selling price inflation being the highest since July.

The work backlog contracted for the seventh consecutive month, albeit at a slow pace. Increasing new orders forced companies to add employees at a faster pace, with most hiring on a full-time basis, respondents said.

The sector's business expectations for the next 12 months remained positive. Planned investments in equipment jointly with hopes for more robust demand supported optimism. However, company confidence was the second weakest in 15 months after July 2024.