Russia’s Services Sector Faces Sharpest Decline Since 2022, Latest PMI Data Shows
Key Findings from the Latest S&P Global Russia Services PMI Report
Continued Contraction in the Services Sector
MOSCOW, July 3 (Reuters) - Russia's services sector contracted further in June as weaker client demand drove steeper falls in output and new orders, a business survey showed on Friday.
PMI Index Performance and Output Trends
Decline in Business Activity Index
The S&P Global Russia Services PMI Business Activity Index fell to 48.2 in June from 48.7 in May, a survey by S&P Global showed. The 50-mark separates growth from contraction.
Output and Demand Dynamics
Output fell for a fourth straight month, and the pace of decline was the fastest since September 2025, with firms citing subdued customer demand and a sustained drop in new orders.
New Business and Employment Trends
Accelerating Decline in New Orders
New business decreased for a third consecutive month, with the rate of contraction accelerating to the fastest since December 2022. Firms linked lower sales to reduced customer purchasing power and financial difficulties among clients.
Job Shedding and Backlog Reduction
Employment fell for a fifth month as companies cut costs and did not replace voluntary leavers. The pace of job shedding was the steepest in three-and-a-half years, while backlogs continued to decline at the second-fastest rate since December 2022.
Price Pressures and Inflation Trends
Input Cost and Selling Price Inflation
Easing Price Pressures
Price pressures eased further in June. Input cost inflation slowed for a fifth straight month to its weakest this year, while selling price inflation softened to its slowest pace since January 2021 as some firms discounted to support sales.
Business Confidence and Composite Index
Outlook for the Coming Year
Although firms remained optimistic about output over the coming year, confidence rose only slightly from May's near three-and-a-half-year low and was still the second-weakest since December 2022.
Composite Index Performance
The composite index also fell, with private sector output contracting at its fastest pace in three months.
(Reporting by Gleb Bryanski; Editing by Toby Chopra)
