The Russian private sector expanded for the first time in seven months in April, defying economists’ expectations for a further contraction, survey data from Markit Economics showed Thursday.
The seasonally adjsuted HSBC composite output index rose notably to 50.8 in April from 46.8 in the previous month. Any reading above 50 indicates expansion in the sector, while a score below 50 suggests contraction.
The services purchasing managers’ index also climbed to 50.7 in April from 46.1 in March, representing a marked turnaround from the substantial reductions seen in the early part of this year. Economists had expected the index to drop to 45.6.
New orders received by the service sector improved in April. Output also returned to growth during the month, led by higher client demand. At the same time, manufacturing new orders dropped again.
Services companies reduced their staffing strength further in April, extending the current sequence of job shedding to 14 months. But the rate of decline eased for the second month in a row and was the slowest since October 2014.
Employment also fell further at manufacturing firms in April, albeit to a lesser extent than seen at service providers.
On the price front, input price inflation in the service sector eased to the weakest in six months in April. Similarly, input prices rose at a slower pace in the manufacturing sector.
Output prices also rose at a weaker pace across both manufacturing and service sectors. The overall rate of charge inflation was the slowest since October 2014.
The material has been provided by InstaForex Company – www.instaforex.com