MOSCOW, Nov 3 (PRIME) -- Russia's seasonally adjusted Services purchasing managers' index (PMI) decreased to 43.7 in October from 51.1 in September, falling below the 50 no-change mark, which means an overall deterioration, research agency S&P Global said on Thursday.
"The steep fall in output was largely driven by a renewed and solid decline in new business, as weak domestic and foreign client demand weighed on sales," the research note read.
“The latest data signaled a sharp decline in business activity, and one that was the fastest since March. Panellists often stated that lower output was linked to weak client demand and a reduction in the size of their customer base following sanctions and a drop in purchasing power at clients,” S&P said.
It said that contributing to the reduction in business activity was a renewed fall in new orders in October. Russian service providers noted that the decrease was due to subdued demand conditions and lower purchasing power at customers.
“The fall in new business was the first since May and solid overall,” it said.
New export orders declined due to sanctions for an eighth month in a row, although, the rate of decline softened slightly.
Employment declined at the fastest rate since May 2020.
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