Russia: Services PMI rebounds in January
February 3, 2021
The IHS Markit Russia Services Business Activity Index jumped to a four-month high of 52.7 in January, from 48.0 in December. As a result, the index climbed above the critical 50-threshold, suggesting that operating conditions across the Russian services sector improved for the first time since September at the outset of this year
January’s improvement was spearheaded by a rebound in new business amid healthier demand metrics at home, which more than offset yet another contraction in new export orders. Against this backdrop, backlogs of work rose for the first time since November 2017 while the rate of job shedding eased to a five-month low. Moreover, business confidence shot up to an over one-year high on hopes of overcoming the health crisis. Lastly, output charges rose at a slower pace as input cost inflation eased.
Meanwhile, the IHS Markit Composite Output Index rose to 52.3 in January, from 48.3 at the end of last year, reflecting a broad-based recovery in both the manufacturing and the services sectors.
Author: Almanas Stanapedis, Research Team Manager