Russia: Services PMI jumps in July
The S&P Global Russia Services Purchasing Managers’ Index (PMI) jumped to 51.1 in July from 47.6 in June. As a result, the index moved above the 50.0 no-change threshold, and signaled an improvement in services-sector business activity compared to the previous month.
July saw stronger demand conditions drive the quickest pace of new order growth since April—albeit still below the long-run series average—as firms reported new client wins and customer referrals. As a result, firms expanded their workforce at the fastest clip since March.
Turning to prices, Russian service providers faced heightened inflationary pressures in July, with input price inflation accelerating to the fastest rate since January, primarily due to increased supplier costs and wage bills. Consequently, businesses raised their output charges at the steepest rate since the start of the year. Lastly, business sentiment remained positive, driven by expectations of stronger demand and efforts to attract new customers, although the degree of optimism dipped to the lowest in a year.