Russia sees renewed uptick in services business activity in July – PMI

Russia’s service sector experienced a resurgence in July, with business activity expanding for the first time in three months, according to the latest S&P Global PMI data. The uptick was driven by increased new orders and a generally improved sales environment.

Despite the positive trend, challenges persist. While companies hired more staff to meet rising demand, input costs surged at the fastest pace since January. This inflationary pressure was passed on to consumers through higher prices, with selling costs increasing at the steepest rate in six months.

“Meanwhile, private sector firms continued to take on additional workers at the start of the third quarter. Although the pace of job creation at manufacturers softened, the overall rise in employment accelerated to the fastest since March. Backlogs of work fell again amid signs of spare capacity.” PMI survey read.

Although business confidence remained optimistic, it softened slightly compared to previous months. Concerns over rising costs and economic uncertainty may have tempered enthusiasm.

Overall, the Russian private sector, including both manufacturing and services, expanded in July. However, inflationary pressures remain a significant challenge for businesses.

Attribution: S&P Global Russia Services PMI