May 6 Reuters Activity across Russias services sector in April grew at its slowest rate in 15 months, a business survey showed on Monday, as the increase in new orders lost pace amid slackening demand.

The SP Global Purchasing Managers39; Index PMI for Russian services fell to 50.5 in April from 51.4 in March, staying above the 50 mark that separates expansion from contraction.

Although firms continued to note that incoming new business supported the increase in output, some incidences of softer demand conditions weighed on the expansion, SP Global said in a statement.

Total new sales grew at the slowest rate in the current sequence of expansion that began last January. Firms said the major drivers of growth were the acquisition of new customers and high intakes of work from abroad.

Panellists noted that stronger foreign client demand from existing customers drove the upturn, SP Global said.

Labour shortages have caused problems across the Russian economy in recent years. But service providers managed to take on new staff, and work backlogs fell for the first time since last July.

Firms reportedly expanded workforce numbers amid greater new business, with many mentioning the hiring of mostly fulltime staff, SP Global said.

Firms confidence in future output, while still positive, fell to the lowest level in nine months.

A sister survey on Thursday showed activity in Russias manufacturing sector grew at the slowest rate in three months in April as expansions…