Nov. 6 (Bloomberg) -- Russia’s services industry grew for a third month in October, accelerating to the fastest pace since May 2011 as new orders increased, encouraging companies to expand headcounts, HSBC Holdings Plc said.
The Russia Services Business Activity Index rose to 57.3 in October from 54.5 a month earlier, HSBC said in a statement today, citing data compiled by London-based Markit Economics. A reading above 50 shows growth, while below 50 indicates a contraction. The measure fell to 52 in July.
Russia, the world’s largest energy exporter, has relied on the private consumption that accounts for half the economy to drive growth as global demand for its commodities of energy and metals suffers. The pace of inflows of new work at service providers was the fastest since July 2008, resulting in the biggest increase in workforces since February, HSBC said.
“It is private consumption that has given a strong boost to the Russian economy,” Alexander Morozov, chief economist for HSBC in Moscow, said in the note. “It looks like we are back to the ‘golden’ pre-crisis years in this respect, with an extra bonus of lower inflationary pressures in the economy now.”
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