News Column

Russia Service Sector Activity Recovers Marginally In Aug

September 2, 2014

MOSCOW (Alliance News) - Service sector activity in Russia recovered in August, results of a survey by Markit Economics and HSBC Bank showed Wednesday.

The HSBC service sector business activity index rose to 50.3 in August from 49.7 in July. This marked the first expansion in activity after five consecutive months of decline, though the rate of expansion is marginal.

A reading above 50 indicates expansion in service sector activity.

However, the HSBC composite output index, which combines service sector and manufacturing activity, edged down to 51.1 in August from 51.3 in July. This signaled weak growth in private sector activity.

New orders in the services sector grew for the third consecutive month and the rate of increase was fastest since February, though it was relatively weak.

Meanwhile, employment levels fell for the fourteenth consecutive month, though at the weakest rate since February.

Input costs inflation quickened for the first time since March and the rate of inflation was the highest in three months. However, output prices inflation eased to its weakest pace since January.

The longer-term outlook in the service sector declined in August and business expectations for the next twelve months reached the joint-second weakest level since December 2008.

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Source: Alliance News

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