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2019.09.0402:36:00UTC+00Russia's Service Sector Expands At Fastest Pace In 4 Months

Russia's service sector expanded at the fastest pace in four months in August, survey data from IHS Markit showed Wednesday.

The services Purchasing Managers' Index climbed to 52.1 in August from 50.4 in July. A score above 50 indicates expansion.

The improvement was driven by the upturn in client demand and a renewed rise in export orders. Nonetheless, firms reduced their workforce numbers for the fourth month in a row.

Moreover, the degree of business confidence dipped to the lowest since March as service providers expressed greater uncertainty towards the wider economy.

The survey showed that input prices rose at the weakest since early-2018 as firms were better able to negotiate costs following supplier efforts to attract new clients. Meanwhile, output charges increased at the fastest pace since May.

Driven by a stronger service sector upturn, the composite output index advanced to 51.5 in August from 50.2 in July.

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