Russia: Services PMI ticks down in April
The IHS Markit services Purchasing Managers’ Index (PMI) came in at 55.2 in April, down from March’s 55.8. As a result, the index remained entrenched well above the 50-threshold signaling a solid improvement in business conditions in the services sector from the previous month. Notably, April’s reading was still the second-best since August 2020.
New business increased at the sturdiest rate since August 2020 in April, supported by both more robust demand conditions at home and recovering export orders, which rose at the strongest pace in nearly two years. Moreover, employment levels grew at the fastest since February 2019, albeit the uptick was relatively marginal. meanwhile, backlogs of work continued to decline whereas costs pressures remained elevated at the outset of Q2. Lastly, business confidence edged up to the highest since May 2019.
Meanwhile, the IHS Markit Composite Output Index edged down to 54.0 in April, compared to 54.6 in March, amid cooling momentum in both the services and the manufacturing sectors.
Commenting on inflationary backdrop, Sian Jones, an economist at IHS Markit, said:
“Cost pressures remained historically elevated across the private sector, albeit softening slightly. Nonetheless, firms sought to partially pass on higher input prices to their clients, as charges increased sharply. The Central Bank of Russia raised the key
policy rate once again in April in an effort to offset inflationary pressures, with a number of panelists noting greater imported goods costs in the latest survey.”