Russia: Services PMI falls in August
September 5, 2022
S&P Global Russia Services PMI Business Activity Index fell to 49.9 in August from July's 54.7. As a result, the index dropped below the 50.0 no-change threshold, signaling a deterioration in private sector business conditions from the previous month.
August’s downturn came amid on the back of reduced purchasing power among customers and the increasing impact of international sanctions due to the war in Ukraine. That said, despite decelerating from July, new orders continued to expand at a strong pace in August amid healthy domestic demand. In contrast, external demand contracted for the sixth month running mid-way trough Q3, while operating expenses continued to rise. Lastly, employment levels declined and business expectations deteriorated in August.
The S&P Global Composite Output Index clocked at 50.4 in August, down from July’s 52.2.