MOSCOW, June 3. /TASS/. The IHS Markit Russia Services Business Activity Index (PMI) - a single-figure measure designed to track changes in total Russian services activity - registered 57.5 points in May 2021, up from 55.2 points in April, IHS Markit analytical agency reported on Thursday.
The PMI value above 50 points is indicative of the business activity growth and the value below that level flags its slowdown.
"The seasonally adjusted IHS Markit Russia Services Business Activity Index registered 57.5 in May, up from 55.2 in April, to signal the sharpest upturn in business activity for nine months," the report said.
Output expanded for the fifth month running, with firms often stating that stronger client demand supported growth. The rate of growth in new order inflows was the quickest since August 2020, while new export orders grew for the third successive month.
At the same time, inflationary pressures remained elevated, as cost inflation accelerated to the sharpest since June 2008. Greater supplier price hikes and increased fuel costs reportedly pushed average operating expenses up, the report said.
The agency’s current forecast projects a 3.1% expansion in GDP in 2021, according to Sian Jones, Economist at IHS Markit.
"The Russian service sector posted a strong expansion in May, with rates of growth in output and new orders quickening. Although the expansion in exports waned slightly, domestic demand supported the upturn in total sales. On a less positive note, inflationary pressures intensified further to the most marked in almost 13 years, amid significant supplier price hikes. The trend was reflected at the composite level as well, as cost burdens rose substantially. Business confidence for the year ahead was knocked midway through the second quarter, as firms expressed concerns regarding inflation and the ability of customers to pay higher prices for goods and services," she was quoted as saying.