Russia Services Activity Contracts In September

(RTTNews) - The Russian service sector logged a renewed downturn in September amid a sharp decline in new orders, survey results from S&P Global showed on Friday.

The services purchasing managers' index, or PMI, dropped to 47.0 in September from 50.0 in August. Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

New orders declined at the fastest pace since December 2022 due to reduced customer numbers and lower purchasing power.

Nonetheless, firms continued to add workforce numbers in order to clear backlogs, and the rate of job creation quickened to the sharpest since January 2024.

On the price front, input price inflation accelerated to a 5-month high in September, driven by higher supplier, wage, and utility costs. Meanwhile, output prices rose at a softer pace amid competitive pressures and efforts to boost sales.

The composite output index also decreased to 46.6 in September from 49.1 in August, signaling the quickest fall in private sector activity in almost three years.