MOSCOW (Reuters) - Growth in Russia's services sector eased to a three-month low in December, as demand softened and cost pressures intensified, S&P Global reported on Saturday. The S&P Global Russia
Russian Services Sector Growth Eases in December 2023
MOSCOW (Reuters) - Growth in Russia's services sector eased to a three-month low in December, as demand softened and cost pressures intensified, S&P Global reported on Saturday.
The S&P Global Russia Services PMI Business Activity Index fell to 51.2 in December from 53.2 in November, marking the sixth consecutive month of expansion but at a slower pace. A reading above 50 indicates growth, while below 50 signals contraction.
Despite a sustained rise in new orders, the pace of output growth moderated, with panellists attributing the slowdown to relatively muted customer demand.
New business continued to grow, albeit at a slower rate than in November, supported by stronger client demand and new client acquisitions.
Employment growth accelerated, with workforce numbers rising at the fastest pace in four months to address increased backlogs of work. The backlog accumulation was the steepest in 16 months, as firms struggled to manage the sustained influx of new business.
Cost inflation quickened, driven by unfavourable exchange rate movements and higher supplier prices, marking the sharpest rise since January. However, the increase in selling prices slowed to the weakest since last August, as firms attempted to pass on higher costs to customers.
Business confidence slipped to its lowest since July 2023, with firms remaining optimistic about future activity but concerned about rising cost burdens.
The broader private sector also saw a slowdown, with the composite PMI Output Index dropping to 51.1 in December from 52.6 in November, reflecting weaker growth in both manufacturing and services.
(Reporting by Reuters)
