MOSCOW (Reuters) -Russia’s service sector saw business activity contract sharply in September, marking the steepest decline since December 2022, as a renewed drop in new orders weighed on output, a survey showed on Friday.

The S&P Global Russia Services PMI Business Activity Index fell to 47.0 in September from 50.0 in August, indicating a contraction in activity. A reading above 50 signals growth, while below 50 indicates contraction.

The downturn was driven by the sharpest fall in new orders since December 2022, with firms citing reduced customer numbers and lower purchasing power. Despite this, employment rose at the fastest pace since January 2024, as businesses aimed to clear backlogs and prepare for potential future demand.

Input costs increased at the quickest rate in five months

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