Russian Services Growth Accelerates To 1-year High

(RTTNews) - Russia's service sector activity expanded at the quickest pace in a year in January as output and new order growth gained momentum, survey results from S&P Global showed on Wednesday.

The services purchasing managers' index, or PMI, climbed to 53.1 in January from 52.3 in December. A score above 50 suggests expansion in the sector.

Higher output was driven by improved customer demand and sustained growth in new orders. The upturn in new business was the fastest in twelve months on the back of successful advertising campaigns and an improvement in client demand.

The survey revealed that stronger demand conditions also supported a fresh rise in employment and greater business confidence.

On the price front, input prices rose at the sharpest pace in two years, largely due to the recent rise in the VAT rate. As a result, the selling price inflation picked up markedly at the start of the year.

The composite output index rose to 52.1 in January from 50.0 in December, signaling a renewed expansion in the Russian private sector business activity.