Russia: Services PMI rises in February
March 3, 2022
The IHS Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in February, up from January's 49.8. February's result marked the best performance since July 2021. As such, the index rose above the 50-threshold, signaling an improvement in business conditions from the previous month.
The improvement in services was chiefly driven by a rebound in output following four months of contraction, while new business remained generally subdued despite some signs of improvement in customer demand and release of new product lines. Less positively, services providers cut workforce numbers at the quickest pace since December while backlogs of work fell sharply. Lastly, cost pressures eased last month and business confidence improved to a four-month high.
Meanwhile, the Composite PMI edged up to50.8 in February, from 50.3 in January.
Commenting on the composite result, Siân Jones, senior economist at IHS Markit, said:
"An expansion in service sector output propped up the private sector, as manufacturers recorded renewed contractions in production and new sales. Although private sector firms were strongly upbeat regarding the outlook, imposed sanctions are expected to hamper growth potential across the Russian economy."