The purchasing managers ‘ index (PMI) for the Russian service sector by the end of June 2016 was 53.8 points versus 51.8 points in the previous month, according to the report by Markit. The index value closer to recorded in April a three-year high (54.2 points) and is kept considerably above the critical mark of 50 points, indicating continued growth in business activity.
According to Markit, the situation in the services sector improved for the fifth month in a row, the same time the continued growth of new orders. Moreover, recorded in June the increase was greatest from July 2015.
According to a senior economist at Markit Tim Sea, a steady expansion in business activity in the Russian services sector on the background of the rise in manufacturing has led to the fact that in June 2016 the total production volume in Russia’s private sector grew at the fastest rate in more than three years.
At the same time, the number of jobs in the Russian services sector in June 2016 fell again, the reduction has continued for 28 consecutive months.
“However, recent job cuts have been minimal in this series, and low in General. Some study participants reported that the job cuts occurred at the background of increasing pressure on Finance companies”, — the report says Markit.
Previously, the company reported an increase of the index of business activity in the manufacturing sector. According to experts at Markit in June 2016, the index rose to 51.5 vs 49.6 points in may. The growth in new orders and production volumes reached a maximum of 19 months, the volume of purchases of raw materials by industrial enterprises was the highest in three years.