Russian Services Sector Exceeds RUB 630 billion

CEIC Russia Data Talk - May 11, 2015 Services consumed by residents of the Russian Federation are indicative of the country’s dynamics. The services sector is measured in either volume or value terms, taking into account actual market prices. The volume indices are adjusted for inflation using the consumer price index for services provided by the Federal State Statistics Service. The dataset is disaggregated by selected types of services and by different federal regions, providing a broad perspective of the market for services in Russia. Total services provided amounted to RUB 631.1 billion in March 2015, marking an increase of 6.7% on an annual basis. There is a seasonal peak of paid services at the end of each year when the annual balances are prepared and invoicing completed. In December 2014 the value reached RUB 680.2 billion and then slightly decreased thereafter. Apart from the peaks at the end of the year, monthly declines are also observed in May resulting from the strong seasonal nature of the data. In terms of the different types of services provided, communal services comprise the largest share – 25% of the total in March 2015. These services, which are mainly publicly-provided, were valued at RUB 156.6 billion in March this year, increasing by 4.4% compared to the same month of the previous year. Other major services are transportation, communications and personal services. In March the value of transportation services reached RUB 102.5 billion, increasing by 11.5% on an annual basis and thus recording the highest increase among all other services. Other rapidly growing services, although not having such a large contribution to the total include educational services mainly comprising private schools and teaching courses. These increased by 17.6% year-on-year (YoY) to RUB 46.1 billion in March, continuing the rising trend over the past couple of years. Of special interest is the development of personal services. These specific types of services are rendered only to individuals and not to legal entities or companies, therefore they are mostly provided by small- and medium-sized businesses. Paid personal services reached RUB 63.5 billion in March 2015, thus growing by 1.2% YoY. The largest type of personal service involves the maintenance and repair of automobiles, which represented 33% of the total in March, followed by the residential construction sector accounting for 24.6%. However, the automobile maintenance sector has been declining in value since the start of 2015 and it was one of the few to decrease (by 5.5% YoY) to slightly below RUB 21 billion. Other services that have lost their growth momentum are residential construction and the maintenance and repair of household appliances. In terms of the services provided in the different federal districts unarguably the greatest share is supplied within the Central Federal region, in which the capital city Moscow is located. Despite the growing trend towards decentralisation of economic activity away from the capital, the region still consumes one third of the country’s services – a market valued at RUB 410 billion. Other districts are catching up, such as the Volga region, which is the second biggest, and the South Federal district, which is witnessing double-digit growth rates in its services market. The dataset of the paid services sector provides a broad overview of the services market in Russia and given the high frequency of the data it can be utilized for short and medium-term forecasts and analysis. By Petar Chavdarov - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
11th May 2015 Russian Services Sector Exceeds RUB 630 billion