Russian service sector growth slows in July – PMI

MOSCOW, August 4 (Reuters)Russia’s service sector grew in July, but at its slowest pace since February, as business confidence hit a low in 2021, the Purchasing Managers Index (PMI) showed on Wednesday. Markit.

The overall index figure fell to 53.5 in July from 56.5 in June, its seventh consecutive month above the 50 mark that separates expansion from contraction.

New export orders contracted slightly for the first time since February, reflecting the conditions of foreign demand.

“Once again, momentum was lost as customer demand weakened amid reintroduced restrictions. Demand from overseas customers was particularly weak as new export orders fell after a strong expansion. in June, “IHS Markit economist Sian Jones said.

Cost pressures continued in July as cost inflation was historically high, despite slowing to the lowest in six months.

Business expectations for Russia’s service sector remained broadly optimistic in July, although they fell to their lowest level in seven months.

“Unfortunately, concerns about medium-term demand growth weighed on business confidence, which hit its lowest level since the start of the year,” Jones said.

A sister survey showed on Monday that Russian manufacturing activity contracted for the second consecutive month in July, led by a further drop in production and a sharper drop in new orders.

(Reporting by Anna Rzhevkina; editing by Andrey Ostroukh; editing by Kevin Liffey)

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