World Economy

Russia PMI Returns to Growth

Russia PMI Returns  to GrowthRussia PMI Returns  to Growth

Russia’s services sector returned to expansion in July as new businesses grew at the fastest pace in 20 months, a Markit survey of purchasing managers showed Wednesday, Dow Jones reported. The headline Purchasing Managers’ Index for the services sector rose to 51.6 in July from 49.5 in June, returning above the 50 mark, which separates growth from contraction. “Amid reports of a gradually improving business climate, which led to the best increase in new work for 20 months, the Russian service sector helped to drive some marginal growth of the economy at the start of the third quarter of 2015,” Paul Smith, senior economist at Markit, said in the PMI report. Prices rose across the services sector in line with the trend seen over the past five-and-a-half years. But competitive pressure sent the rate of inflation to its lowest level in 11 months. Business expectations improved in July due to hopes for stronger demand, the Markit survey showed. Employment in the services sector, however, declined again as companies reported excess capacities.