Financial News: Russian Service Sector Downturn Deepens In May

Russian Service Sector Downturn Deepens In May

06/03/2026 - 03:54:00 (RTTNews)

(RTTNews) - Russia's service sector activity deteriorated further in May as output fell further amid a steeper drop in new orders, survey results from S&P Global showed on Wednesday.

The services purchasing managers' index, or PMI, dropped to 48.7 in May from 49.7 in April. Any score below 50 suggests contraction in the sector.

Output fell at the fastest pace since September 2025, linked to lower new sales intakes, which declined at the quickest rate in eight months, and subdued customer demand.

On the price front, input price inflation eased to a 5-month low in May, and the rate of charge inflation eased for the fourth month running from January's recent VAT-driven peak and was the weakest in 2026 to date.

Looking ahead, companies expect greater output over the coming twelve months, though the level of optimism faded to the lowest since January 2023 amid concerns regarding customer liquidity and weak demand conditions.

In line with a fall in new orders and lower business confidence, service providers reduced workforce numbers, and firms registered a further fall in the level of incomplete work, with the rate of depletion accelerating to the steepest in four years.

The composite output index rose to 49.2 in May from 49.1 in April, signaling another marginal contraction in the Russian private sector activity.

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