(RTTNews) - Russian Service sector increased to a biggest reading since September 2008, a report by the VTB Capital said on Thursday.

The Services Purchasing Managers Index or PMI rose to 54.3 in October from 53 in September, improving for the ninth time in ten months. A reading above 50 indicates expansion, while a reading below 50 signals contraction.

Activity at financial intermediation companies increased in October, but transport and storage sector showed contraction.

Russian service providers slashed their workforce numbers in October, however the rate of decline was the weakest since October 2008.

The business sentiment in the service sector was strongly positive in October and the overall degree of optimism was biggest since December 2006.

Svetlana Aslanova, analyst at VTB Capital, said, “Business activity accelerated due to rising new business and growing clientele in all sub-sectors except Transport & Storage.”

“Being cautiously optimistic, we believe that the Russian services sector has embarked on a recovery path.” Aslanova added.

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Posted in Categories: Economy, Releases.

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