Russian Service Sector Expands In October

(RTTNews) - Russia's service sector activity logged an upturn for the first time in five months in October as the decline in new orders moderated, survey results from S&P Global showed on Thursday.

The services purchasing managers' index, or PMI, climbed to 51.7 in October from 47.0 in September. Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

New orders fell at the slowest pace in four months amid signs of improving demand. Firms raised workforce numbers further, driven by greater business requirements and fresh accumulation of backlogs.

Meanwhile, cost pressures intensified in October as the input price inflation rose to a 6-month high due to higher wage bills, transportation costs, and supplier prices. As a result, selling price inflation marked the steepest since January.

The composite output index rose to 50.2 in October from 46.6 in September, signaling a modest expansion in the Russian private sector economy.