Page 55 - RusRPTSept23

4.3 Industrial sectors and trade 4.3.1 Producers PMI
Russian service sector firms recorded another monthly expansion in business activity at the start of the third quarter, according to the latest July 2023 PMI data from S&P Global. However, as in manufacturing, the rates of growth for both output and new service business eased from June. (chart) As followed by bne IntelliNews, despite the fallout from Russia's full-scale military invasion of Ukraine, the manufacturing sector ended 2022 with a historically strong expansion in output. The manufacturing PMI since January 2023 continued to trend in positive territory.
But the July manufacturing PMI report suggested that the sector is losing momentum and is running into capacity constraints, as indicated by rising input costs and inventory depletion. This is in line with most recent reports that Russian industry is operating at record-high capacity utilisation and is close to overheating.
The seasonally adjusted S&P Global Russia Services PMI Business Activity Index registered 54.0 in July, above the 50.0 no-change mark, indicating expansion, but down from 56.8 seen in June.
“The latest data signalled a solid expansion in service sector output, in line
RUSSIA Country Report September 2023 www.intellinews.com