Russia Services PMI climbs to 53.2 in Nov from 51.6 in Oct - S&P Global

MOSCOW. Dec 4 (Interfax) - The Russia Services PMI rose to 53.2 points in November from 51.6 points in October, S&P Global research data show.

The latest data indicate the fastest growth in activity in the sector since January 2024.

The Russia Composite Output Index, which tracks activity in both the services and manufacturing sectors, rose to 52.6 points in November from 50.9 points in October.

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

New orders in the services sector grew at a faster pace amid improved demand conditions. Respondents also cited the launch of new service lines as a factor in the sector's upturn.

Companies reported an increased cost burden last month. The rise in costs was attributed to higher supplier prices, increased transportation costs, and higher wages. Several survey participants also cited unfavorable fluctuations in the exchange rate that drove up purchase prices. However, the rate of cost-push inflation has slowed slightly since October.

Rises in cost prices moderated in November although companies tried to pass on higher costs to customers. The inflation rate for cost prices was broadly stable and in line with the long-term average despite declining to the slowest in three months.

Employment in the sector increased for the sixteenth consecutive month, though job creation was the slowest since February.

The work backlog rose for the first time in eight months, as new orders surged, despite the gains in employment.

Business confidence in the sector improved in November, with respondents more optimistic about the manufacturing outlook on the horizon than in October, with some hoping for improved demand conditions and investment in new service lines.