(Reuters) – Business activity in Russia’s service sector grew in February, as inflation pressure eased. In addition to this, business confidence reached a 5-month high on Thursday. The Markit purchasing manager index (PMI), showed that the PMI (Markit purchasing managers index) was up by five months.

We are not certain of the precise dates of survey. It did not include any mention of Russia’s invasion.

Moscow describes the action it took in Ukraine on February 24th as a “special military operation”. Moscow and the Russian central banks have come under severe sanctions for their actions in Ukraine.

Markit’s February headline number rose from 49.8 in January to 52.1, bringing it above the 50 threshold that distinguishes expansion and contraction for the first-time since September.

The monthly survey revealed that the sector saw a decline in employment for the third month, at the fastest rate since late 2020.

Business expectations increased as businesses planned to invest more and believe that client demand will rise.

Sian Jones is a senior economist with IHS Markit that compiles the survey. “Though total demand remains historically subdued,” she said.

Although private sector companies were optimistic about the outlook, sanctions are likely to limit growth in the Russian economy.

After Russia’s invasion of Ukraine, the West has imposed severe economic and financial sanctions against Russia. This sent the ruble to new lows and opened the door for lower living standards.

An earlier sister survey revealed that Russian manufacturing activity declined in February due to a drop in new orders. This was the result of businesses feeling the effects of the COVID-19 epidemic.