MOSCOW, December 31. /TASS/. The IHS Markit Russia Services Business Activity Index – a single-figure measure designed to track changes in total Russian services activity – dropped to 53.1 points in December 2019 from 55.6 points in November, IHS Markit analytical agency reported on Tuesday.
"December PMI survey data indicated a solid rise in business activity across the Russian service sector. The pace of growth eased to a four-month low, however, despite a stronger rise in new business. Domestic and foreign client demand improved, with firms signaling a renewed expansion in new export orders. Despite this, business confidence dipped to the lowest since August 2017 amid reports of greater competition. Hesitancy towards future output was also seen in a slower rate of job creation," the agency said.
"Business activity growth lost momentum at the end of 2019. Greater competition reportedly weighed on the upturn, with firms reining in their hiring activity in turn," the agency says.
"More intense competition also resulted in service providers struggling to pass on higher costs to clients, with selling prices rising at one of the slowest paces for over a year," the report says.
Business activity expectations among service sector firms remained historically muted in December, according to the agency. "Although companies still expect output to rise over the coming 12 months, the degree of confidence fell to the lowest for over two years," it adds.