Russia's services sector records slowest growth in 15 months: S&P Global PMI

Sluggish growth in Russia: Russia's services sector witnessed its slowest growth rate in 15 months in April, as per the latest findings from the S&P Global Purchasing Managers' Index (PMI). The index dipped to 50.5 from March's 51.4, remaining above the 50 mark indicating expansion.

The report highlighted that while incoming new business continued to boost output, a slowdown in demand impacted the pace of expansion. Total new sales expanded at the slowest rate since January of the preceding year, with firms attributing growth primarily to acquiring new customers and increased foreign work orders.

Foreign clients drive

The surge in foreign client demand, particularly from existing customers, was cited as a significant driver of growth by surveyed businesses.

Despite prevailing labour shortages in the Russian economy, service providers managed to onboard new staff, leading to a decrease in work backlogs for the first time since July of the previous year. The expansion in the workforce was mainly driven by the hiring of full-time employees, reflecting the upturn in new business.

However, confidence amongst firms regarding future output, though still positive, experienced a dip to its lowest level in nine months.

A related survey unveiled earlier in the week indicated a similar trend in Russia's manufacturing sector, with growth rates slowing down slightly in April compared to the previous three months.

(With Reuters Inputs)