Russian Service Sector Growth Eases In February

Activity in the Russian service sector increased at a slower pace in February, data from a survey by Markit Economics and HSBC Bank showed Monday.

The purchasing managers' index (PMI) for the service sector dropped to 55.3 in February from 56.5 in January. The latest reading was the second-highest in the past seven months. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline.

New orders received by Russian service providers increased for the eighteenth consecutive month in February, but the rate of growth slowed from the previous month. Outstanding business continued to decline during the month.

Employment in the service sector was strong in February, and the rate of job creation remained unchanged from January's eight-month high. Input cost inflation eased to a 16-month low, mainly reflecting higher salaries, rents and increase in utility and fuel prices. Consequently, output prices also increased sharply in February.

The composite output index, which measures performance of both the manufacturing sector and the service sector, came in at 53.7 during the month.