Russia: Services and Composite PMIs rise in January
The IHS Markit Russia Services Business Activity Index rose to 54.1 in January, from 53.1 in December. As a result, the index remained above the critical 50-threshold, signaling a solid improvement in business activity across the Russian service sector at the beginning of 2020. The result chiefly reflected sturdy new order growth, supported by robust foreign client demand. On top of that, service providers continued to increase employment levels, albeit only marginally, amid shrinking backlogs of work. Meanwhile, business sentiment softened on uncertainty over future client demand.
Meanwhile, The Russia Composite Output Index increased to 52.6 in the opening month of 2020, from 51.8 in December. Commenting on composite result, Sian Jones, an economist at IHS Markit, highlighted sustained divergence between the manufacturing and services sectors at the outset of this year:
“The Russian private sector continued to grow in the opening month of 2020, with firms registering a more robust expansion in business activity. The upturn was only moderate, however, with the manufacturing sector still lingering in contraction territory. As such, we are forecasting economic growth to ease to 1.25% in the opening three months of the year compared to the same period in 2019.”