Markit: Russia's May Services PMI rises to 35.9 from 12.2 in Apr

MOSCOW, Jun 3 (PRIME) -- Russia's Services purchasing managers' index (PMI) grew to 35.9 in May from 12.2 in April, remaining below the 50 no-change mark, which means an overall deterioration, researcher Markit said in a statement on Wednesday.

“May PMI data signalled a softer, albeit considerable contraction in business activity across the Russian service sector. The decline in output largely stemmed from weak demand conditions and difficulties for customer-facing business to reopen due to emergency public health measures,” it said.

Total sales were impacted by muted domestic and foreign client demand, as global lockdowns restricted travel. Subsequently, firms cut their workforce numbers substantially, as lower new business inflows led to spare capacity and pessimistic expectations for the coming year.

Output charges fell at the sharpest pace since October 2009 amid efforts by firms to attract new clients.

"Business activity at Russian service providers continued to be stymied by emergency public health measures in response to the COVID-19 pandemic. Customer-facing firms were especially hard hit as some reportedly remained closed. New business was hampered by weak domestic and foreign demand," researcher Sian Jones said.

New orders slid on the back of an export order decrease, as a result, the rate of job contraction in the sector was the highest since March 2009. The cost burden increased slightly.

Companies continue to have a negative outlook for their business for the next 12 months.

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