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Investing.com -- Russian service providers reported a renewed rise in business activity in October, according to the latest S&P Global Russia Services PMI survey.
The seasonally adjusted S&P Global Russia Services PMI Business Activity Index registered 51.7 in October, up from 47.0 in September, signaling the first expansion in output since May. Any reading above 50 indicates growth.
The upturn coincided with a near-stabilization of new orders. While new business declined for the fourth consecutive month, the rate of contraction slowed to only a marginal pace, marking the smallest drop in this period.
Russian service sector firms increased their staffing levels for the fourth month in a row. The pace of job creation was solid despite softening slightly from September. Companies reported filling existing vacancies and making efforts to boost capacity.
Input costs rose at the fastest rate in six months, driven by higher wage bills, transportation costs, and supplier prices. In response, service providers increased their selling prices at the quickest pace since January, though the rate remained historically modest.
The level of outstanding business increased marginally in October, representing the fastest rise in backlogs in four months, despite the continued fall in new orders.
Business confidence among service providers remained positive but fell to its lowest level since December 2022. Companies cited concerns about customer solvency as a factor dampening expectations.
The broader S&P Global Russia Composite PMI Output Index, which includes both services and manufacturing, posted 50.2 in October, up from 46.6 in September, indicating a fractional rise in overall private sector activity. The growth in services offset continued contraction in manufacturing production.
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