Russia Services PMI falls to 51.2 in Dec from 53.2 in Nov - S&P Global

MOSCOW. Dec 28 (Interfax) - Russia's Services PMI slid to 51.2 points in December from 53.2 points in November, S&P Global research data show.

The latest data indicate that growth in the sector in December has been its weakest since September.

The Russia Composite Output Index, which tracks activity in both the services and manufacturing sectors, fell to 51.1 points in December from 52.6 points in November.

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

New orders rose on improved demand and new customers, though the pace of growth had slowed since November and was generally lower than the series average.

Employment has been growing since August 2023, and was recorded again in December. Job creation accelerated to the fastest in four months amid rising new orders and pressure on capacity.

Work backlogs increased, with the pace of accumulation the sharpest in 16 months.

Business cost burdens increased substantially in December. Cost inflation was the sharpest since January amid adverse exchange rate movements and higher supplier prices.

Meantime, inflation in cost prices has slowed. Although companies have sought to pass on increased costs to customers, the pace of price rises for products has been the lowest since August last year.

Business confidence among respondents fell to its lowest level since July 2023. Companies have remained optimistic about the sector's prospects next year amid planned business investment, though concerns about higher costs pressured expectations.