Russia’s service sector contracted for the second straight month in November, but at a softer pace, survey data from IHS Markit showed on Thursday
The services Purchasing Managers’ Index rose to 48.2 in November from 46.9 in October. Any reading below 50 indicates contraction in the sector.
Output declined for the second month in a row in November. New business fell further and new orders decreased.
On the price front, the cost burden increased since January last year and input prices rose. Selling prices increased in November, with the rate of inflation remaining solid.
The number of workforce were reduced for the third month in a row in November, with the pace of job shedding easing slightly from October. Backlogs of work declined.
Business confidence for the next 12 months outlook improved in November and optimism was reported.
The composite output index increased to 47.8 in November from 47.1 in the previous month.
“Nonetheless, our forecast expects that the annual rate of inflation will average 3.3 percent in 2020, with price rises weighed down by subdued demand,” Sian Jones, an economist at IHS Markit, said.