Page 32 - RusRPTJun19

4.3 Industrial sectors and trade 4.3.1 Producers PMI
Russia's services sector posted a notable slowdown in April, as the May 6 report by IHS Markit showed the softest rise in services output since June 2018, while the rate of new business growth slowed down to a ten-month low.
Previously Services PMI consistently outperformed the Manufacturing PMI part of the report, pulling up the Composite Index of overall economic activity. But in April services failed to back up the manufacturing activity, which also slowed down.
The IHS Markit Russia Services Business Activity Index posted 52.6 in April, notably down from 54.4 in March. As reported by bne IntelliNews, the Manufacturing PMI posted 51.8 in April, down from 52.8 in March, but above the 50 no-change mark.
As a result, the Composite Output Index, the weighted average of the two, recorded 53.0 in April, down from 54.6 from March, with the implied rate of expansion the slowest since August 2018.
The slowdown in expansion in services in April was attributed by the panellists surveyed by Markit to softer demand conditions that weighed on growth. Where occurring, the upturn was supported by new client acquisitions and an increase in marketing activity.
While the expansion in new orders in the reporting month was modest in services, the sector saw a sharp rise in new export business. The rate of growth was the strongest since data collection for the series began in September 2014.
Nevertheless, "despite a slower overall expansion in client demand, service providers recorded a stronger degree of optimism in future output growth," the report reads, with the business expectations at their highest level since July 2011. The confidence of service providers was backed up by new product launches, forecasts of greater client demand and increased advertising.
32 RUSSIA Country Report June 2019 www.intellinews.com