The increase in activity in the services sector slowed to the lowest...

The increase in activity in the services sector slowed to the lowest in five months

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PMI in the service sector in Russia in October fell to 52.7 points from 53 points in September. An alarming signal was the strongest in six months, the reduction in the number of jobs, however, while business activity continues to grow

The purchasing managers ‘ index (PMI) for the Russian service sector by the end of October 2016 fell to 52.7 points (from 53 in September), follows from the report by Markit.

The current value of the index was the lowest in last five months (in July, the PMI reading rose to 55 points, which was the maximum for the previous 3.5 years and since then decreasing slowly), but still remains above the critical mark of 50 points, indicating continued growth in business activity. According to Markit, its growth has continued for nine consecutive months.

An alarming signal was the consolidation of the trend to reduce the number of people employed in the service sector workers. In September, the number of jobs fell for the first time in three months in October, the situation was the same, and the reduction of employees was the highest since may of 2016.

At the same time experts Markit recorded a rise in prices on the part of service providers, increasing their costs and slower growth in new orders. Overall, however, the situation in the Markit estimate rather optimistic.

“Expansion in the sector continues to be strong compared to the average performance of 2016, as a result, services may achieve solid growth in the fourth quarter,” said Markit economist Samuel Agassi.

1 Nov company Markit announcedthat by the end of October 2016 PMI in the manufacturing sector reached the level of 52.4 points, which was the highest value in four years. In Markit said that growth reflects a General improvement in market conditions with increased production volumes.