MOSCOW Activity in Russia's services sector grew at the fastest rate in five months in August as the sharpest rise in new orders since July 2020 drove up output, a survey showed on Tuesday.

The S&P Global Purchasing Managers' Index (PMI) for Russian services rose to 57.6 from July's 54.0, staying above the 50 mark that separates expansion from contraction for the seventh consecutive month.

"August data signalled stronger demand conditions across the Russian service sector as output expanded at a sharper pace," S&P Global said.

"Growth in business activity was steep overall, and supported by the quickest rise in new orders for just over three years," it added.

Domestic client demand led the increase in orders, but new export business also grew, according to the survey.

The new orders sub-index climbed to 58.1 in August, the highest reading since July 2020, from the previous month's 53.4.

Business confidence over the year ahead climbed to its highest level since September 2021.

A sister survey published last Friday showed Russian factory activity grew at the strongest rate in three months in August as new orders gained momentum, although the weak rouble added to the inflationary pressure facing manufacturers.

(Writing by Hugh Lawson; Editing by Catherine Evans)