Markit says Russia’s Services PMI falls to 37.1 in March

MOSCOW, Apr 3 (PRIME) -- Russia’s Services Purchasing Managers’ Index (PMI) fell to 37.1 in March from 52 in February amid the coronavirus outbreak, research company IHS Markit said in a report on Friday.

The outbreak of the coronavirus disease 2019 and emergency measures put in place to tackle the spread dented domestic and foreign client demand, with total sales contracting markedly. Subsequently, firms reduced workforce numbers amid greater spare capacity.

The decrease in output was the fastest for over 11 years and marked overall.

“The Russian service sector was greatly impacted by the outbreak of COVID-19 in March, with marked contractions in activity and new business. Demand for Russian services fell at the fastest pace since the financial crisis as domestic and foreign customers reduced new order placements,” Sian Jones, economist at IHS Markit, commented on the survey.

“At the composite level, private sector output fell at the quickest rate for over 11 years, with the first quarter ending on a negative note. Our current forecast signals broad stagnation across the Russian economy in 2020, with contractions expected in the middle quarters of the year.”

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