FX.co ★ Russian Services Activity Expands Least In 15 Months

The growth rate of services activity in Russia was reportedly the slowest it has been in over a year during April, due to weakening demand. This was according to survey results released on Monday by S&P Global.

The Services Purchasing Managers' Index (PMI) for April fell to 50.5, a decrease from March's 51.4. It should be noted that, despite the drop, a PMI score above 50 still signifies expansion within the sector.

The recent data suggests the most lackluster increase in output during the current 15-month growth trend. Though there was an increase in new orders, it was only slight, marking the most modest improvement since the expansion period began in February 2023.

In terms of pricing, the inflation of input prices fell to its second-lowest point since July 2020. Consequently, the inflation rate of selling prices also decreased reaching its slowest pace since early 2021.

Despite the slow growth in sales demand, companies continued to expand their workforce during April. Forecasts for the future predict an increase in output within the next year; however, the level of optimism among these companies has plunged to a nine-month low.

Finally, the Composite Output Index for April fell to 51.9 from March's 52.7, indicating the slowest expansion of private sector activity observed in the past fifteen months.