Russia’s service sector grew at the quickest pace since August 2020, data from IHS Markit showed on Thursday.

The services Purchasing Managers’ Index rose to 57.5 in May from 55.2 in April. Any reading above 50 indicates expansion in the sector.

New orders increased in May and new export orders rose for the third month in a row.

On the price front, input price inflation rose to the fastest since June 2008 and selling prices increased.

Employment rose for the fourth month in a row in May, while backlogs of work declined.

Business expectation moderated slightly in May as firms were concerned regarding higher prices and threat of customer insolvencies.

The composite output index rose to 56.2 in May from 54.0 in the previous month. The latest growth in the index was the fastest since August last year.

“Our current forecast projects a 3.1 percent expansion in GDP in 2021,” Sian Jones, senior economist at IHS Markit, said.

The material has been provided by InstaForex Company – www.instaforex.com

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