SberIndex: service sector brings Russian spending back to record figures

Russian spending growth returned to maximum post-pandemic levels May 10-16, 2021, with spending 6.5% higher than in the last pre-pandemic weeks. SberIndex analysts link the acceleration to the service sector. For the second time in a year, spending on services entered the green zone compared to the pre-pandemic period (+2.8%). The driving forces behind the rise in demand were the Healthcare Services (+4.8%) and Taxis, Car Rental, Carsharing (+5.5%) categories.

Nominal change (% y-o-y) without adjustments. Consumer spending increased May 10-16, 2021, at a rate of 23.2% y-o-y.

Changes compared to weekly average figures for Feb 1-Mar 15, 2020. May 10-16, 2021, saw Russian spending growth return to maximum post-pandemic levels. Spending levels were 6.5% higher than in the last pre-pandemic weeks.

Almost all aspects of the acceleration compared to last week are due to the service sector. Spending on services entered the green zone compared to the pre-pandemic period for the second time in a year (+2.8%).

Demand in the Healthcare Services (+4.8%) and Taxis, Car Rental, Carsharing (+5.5%) categories and all other transport segments increased significantly.

High growth rates continue in the Building Products (+36.5%), Clothing, Footwear, Accessories (+31.3%), and Department Stores (+29.3%, in large part due to online platforms) categories.

SberIndex analysts reiterate that over the next two months it will be exceedingly difficult to interpret the evolution of spending compared to last year's levels (% y-o-y), an integral part of the tracker, due to the extreme impact of the base effect. Stringent restrictions were put in place in April and May 2020, as a result of which consumption functioned at the minimum volume required to keep the economy moving. For a clearer representation of the evolution of current demand, a temporary comparison with the fixed period of February and the first half of March 2020 is being introduced (Feb 1 - Mar 15, 2020).

When publishing the materials, a reference to SberIndex (www.sberindex.ru) is mandatory.

SberIndex.ru is an analytical website by Sberbank that illustrates how life in Russia has changed during the COVID-19 pandemic. Today, you can find three key indices on the website based on anonymized data: a consumer activity index, changes to the activity index, and a tourism index. The evolution of gross payroll and changes to small business activity are presented in the Business section. The website also features research by SberIndex Lab (previously SberData), the Center for Macroeconomic Research, and more.