Markit: Russia’s Services PMI plummets to 46.9 in October

MOSCOW, Nov 5 (PRIME) -- Russia's Services purchasing managers' index (PMI) plummeted to 46.9 in October from 53.7 in September, falling below the 50 no-change mark, which means an overall contraction, researcher IHS Markit said in a statement on Thursday.

“The seasonally adjusted IHS Markit Russia Services Business Activity Index registered 46.9 in October, down notably from 53.7 in September to signal a renewed decline in business activity. The fall in activity was the fastest since May and solid overall, as service providers linked the downturn to weaker client demand and lower new sales,” the statement read.

The October data showed the first contraction in new orders since June, which was much slower than the April’s record contraction, but differed drastically from the September increase. New coronavirus restrictions damper client demand and prevent new sales. In addition to that, companies reduced the amount of personnel in October at the fastest pace since June, Markit said.

“Despite service providers being optimistic on balance regarding the outlook for activity, sentiment dropped to its lowest for five months. Uncertainty surrounding the pace of economic recovery and the virus’s spread weighed heavy on expectations,” Markit said quoting Economist Sian Jones.

“At the composite level, manufacturers and service providers exhibited similar trends as the pandemic exerted itself once again. Our latest forecast sees a 9.5% decline in GDP (gross domestic product) during the fourth quarter compared to the same period a year ago, with the downturn expected to be extended into the opening three months of 2021,” Jones said.

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