Russia: Services PMI drops in June
The S&P Global Russia Services Purchasing Managers’ Index (PMI) fell to 47.6 in June from 49.8 in May, the lowest reading in one-and-a-half years. As a result, the index moved further below the 50.0 no-change threshold, and signaled a faster deterioration in services-sector business activity compared to the previous month.
Services activity eased in June as new orders declined for the first time since January 2023; firms attributed this to lower purchasing power among clients and a decrease in customer numbers. Moreover, job creation in the sector slowed.
In terms of prices, input costs increased at a steeper pace due to higher wages, repair bills, and increased supplier and transportation prices. This led to firms raising their selling prices at the fastest rate in five months. Lastly, business confidence among service providers weakened to the lowest level of optimism since July 2023. However, firms remained hopeful for an improvement in demand and reported planned spending on new service lines.