Russian services sector returns to growth in Sept -PMI
Reuters
Published Oct 05, 2022 02:08AM ET
Updated Oct 05, 2022 03:07AM ET
MOSCOW (Reuters) - Russia's service sector returned to growth in September, a business survey showed on Wednesday, buoyed by an increase in domestic demand but with sanctions against Moscow continuing to restrict overseas orders.
The S&P Global (NYSE:SPGI) Purchasing Managers' Index (PMI) for Russian services rose to 51.1 in September, moving back above the 50 mark, which separates contraction from expansion, after slipping below that level in August to 49.9.
"Foreign customer demand decreased at a sharp pace that accelerated notably from August," S&P Global said in a statement. "The decline was often attributed to the impact of sanctions on business operations."
New export orders fell further from August levels and while new business increased, it did so at the slowest pace in the current four-month sequence of expansion.
Employment also fell, at its fastest pace since May.
It was not clear how heavily President Vladimir Putin's partial mobilisation order, made on Sept. 21, had weighed on workforce numbers. Tens of thousands of men have been drafted into the army or have fled abroad since then.
Concerns regarding economic and political uncertainty weighed on sentiment, S&P said, though business confidence ticked higher on hopes of increased client demand.
A sister survey earlier this week showed that Russian factory activity grew at its fastest rate in 3-1/2 years in September, though Western sanctions continued to weigh on export business.
The manufacturing sector registered six months of contraction that began in February, when Russia sent tens of thousands of troops into Ukraine, triggering unprecedented Western sanctions on Moscow.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.