Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Services Growth Slows, Hiring Up

The service sector grew at a slower rate in November, hit by rising inflationary pressures, the HSBC purchasing managers index showed on Friday.

The headline figure fell to 54.1 in November from 55.6 in October, remaining above the 50 mark that separates expansion from contraction. Russian firms have seen a sharp increase in charges and tariffs with consumer prices rising by 0.2 percent for the fourth week in a row.

“The Composite Output Prices Index’s gain in November was the second biggest in the series’ history,” said Alexander Morozov, chief economist for Russia and the CIS at HSBC.

The input price sub-index bounced up to 58.6 in November from 54.4 in the previous month. The sharp rise in input prices was driven by increasing costs in wages, rents and fuel.

On the positive side, Russian companies have never taken on so many new employees in one month since May 2008. “It appears that service providers found this level acceptable in the new post-crisis reality, and therefore increased their staffing in November after three months of labour shedding,” Morozov said.

HSBC baseline scenario suggests that inflation will continue to rise moderately over the year ahead.

“Traditional growth-stimulating policy would likely end up with higher inflation rather than faster growth in these circumstances,” Morozov added.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more