Russia: Services PMI ticks up in March
The S&P Global Russia Services Purchasing Managers’ Index (PMI) rose to 51.4 in March from 51.1 in February. As a result, the index moved further above the 50.0 no-change threshold and signaled a faster improvement in services sector operating conditions compared to the previous month.
March’s uptick was primarily driven by a faster expansion in new orders, as companies noticed strengthened domestic demand due to the introduction of new service lines. As a result, there was a stronger upturn in employment in March. Less positively, new export orders fell for the first time in 11 months on weakened foreign client demand. Additionally, service providers faced pressure on capacity as evidenced by another rise in backlogs of work.
On the pricing front, input prices rose at the slowest pace since July 2020, prompting firms to moderate output charge inflation; service firms aimed to remain competitive by passing through softer price hikes to customers. Lastly, business confidence slipped to a three-month low but remained historically strong amid expectations of further upticks in client demand and investment in advertising campaigns.