Russian Services Growth Hits 1-Year High

(RTTNews) - The Russian service sector's growth quickened in January to the highest level in one year amid sharper upturns in output and new orders, survey results from S&P Global showed on Wednesday.

The services purchasing managers' index, or PMI, rose to 54.6 in January from 51.2 in December. A reading above 50 indicates expansion.

Greater business activity at service providers was attributed to a sustained rise in new orders, which grew at the fastest pace in one year, and more favorable demand conditions, the survey said.

Rising new orders prompted them to raise their workforce number in January, though the pace of job creation eased and was marginal overall. Despite this, backlogs of work continued to rise.

On the price front, input price inflation rose to a 1-year high amid hikes in supplier and transportation costs and increased wage bills. In order to pass the higher cost through to customers, firms lifted their selling prices sharply.

Looking ahead, companies remained upbeat about expected activity over the next year, buoyed by hopes of stronger demand conditions and planned investment in new service lines and advertising.

The composite output index climbed to a 1-year high of 54.7 from 51.1 in December, reflecting steeper expansions in manufacturing and service sector output.