Russia PMI February 2021

Russia: Services PMI edges down in February

The IHS Markit Russia Services Business Activity Index fell to 52.2 in February, from a four-month high of 52.7 in January. As a result, the index remained above the critical 50-threshold, suggesting that operating conditions across the Russian services sector continued to improve in February, albeit at a softer pace than at the outset of the year.

February’s moderation came chiefly on the back of a slower increase in new orders. Flagging new business growth came amid continued fall in new exports orders and a somewhat stagnant domestic client demand. That said, services providers increased their payroll numbers at quickest pace in over a year, leading to another drop in the level of outstanding business. More positively, business sentiment strengthened, rising to pre-pandemic levels. Lastly, input cost inflation rose in Febraury, thus prompting a hike in output charges.

Meanwhile, the IHS Markit Composite Output Index rose to 52.6 in February from 52.3 in January, amid the narrowing gap between operating conditions in the manufacturing and the services sectors.

Commenting on the composite result, Sian Jones, an economist at IHS Markit, said:

“Cost pressures continued to put strain on margins, as input prices rose markedly once again. Firms responded by hiking their selling prices, however. Historically subdued demand conditions across the private sector hampered the pace of recovery, however, and in part led to a moderation in output expectations among service providers. Nonetheless, we expect business activity to pick up through the year, with our current forecast anticipating that the economy will expand by 2.1% in 2021.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest