Experts Note Record Growth of Business Activity in Russia’s Service Sector

PHOTO by Alexey Filippov / RIA Novosti

The PMI Business activity index of Russia’s service sector reached 56.5 points in December, showing the highest growth rate since July 2016, according to the IHS Markit analytics agency. In November, the value of the index was 54.7 points.

As economist at IHS Markit Samuel Agass notes, an increase in new orders contributes to the growth of business activity. The highest growth was recorded in the hotel and restaurant sector. At the same time, there is a growing number of pending orders against the backdrop of an increasing number of new projects.

“Growth in the Russian service sector switched to a higher gear at the end of 2016, as the head PMI rose to a 49-month high after the second consecutive gain in business activity growth,” says Agass. According to him, with the support of the acceleration in growth of new orders, service providers recorded a significant increase in production at a rate which again exceeded the historical average.

In November, experts from the National Research University Higher School of Economics (HSE) reported on the growth of business confidence in the Russian tourist industry.