Russian service sector growth slows in September ’24

Business activity in Russia’s service sector continued to expand in September, but at a slower pace due to weaker demand, according to the latest PMI survey from S&P Global.

The Russia Services PMI Business Activity Index fell to 50.5, down from 52.3 in August, indicating only a slight rise in output. This marked the third consecutive month of growth but was the slowest in this period.

New business orders increased, though at a reduced pace compared to August, leading to a softer rate of job creation. Despite this, confidence in future activity rose to its highest level since May.

Input costs increased at a slower rate than the historical trend, but firms passed higher costs to customers, resulting in a sharp rise in selling prices.

Companies also saw a decline in incomplete business for the sixth consecutive month, signalling spare capacity across the sector.