(Reuters) – Russia’s services sector expanded at its slowest pace in October since February, but extended its growth series to nine months thanks to strong export business, while charges and input prices rose, a business survey showed on Friday.
The S&P Global Purchasing Managers’ Index (PMI) for Russian services fell to 53.6 in October from 55.4 in September, but stayed above the 50 mark that separates expansion from contraction for the ninth consecutive month.
Russian firms’ export business has struggled while Moscow has been at war in Ukraine, but new export orders grew at their second-fastest pace since collection for that data began in September 2019.
Meanwhile, average cost burdens increased at a substantial pace.
“Service sector firms suggested that greater output charges were due to the pass-through of higher costs to customers,” S&P Global said. “Greater wage bills and increased supplier prices drove the hike in business expenses, according to panellists.”
Surveyed firms retained positive expectations for future output, with the degree of optimism rising to the highest since April 2019.
A sister survey on Wednesday showed Russia’s manufacturing activity grew in October as new orders increased at their fastest pace in more than 12-1/2 years, while pressure on firms to expand production capacity continued.
(Reporting by Alexander Marrow; Editing by Christina Fincher)
