The S&P Global Russia Services PMI fell to 49.5 in March 2026 from 51.3 in February, entering contraction territory and marking the first decline in six months. The drop was driven by softer demand conditions, with new orders broadly unchanged. Some firms reported stable customer numbers, while others cited weaker purchasing power, rising uncertainty, and lost business linked to the Middle East conflict. Meanwhile, employment declined at the fastest pace since early 2023, as firms cut costs amid weaker sales. On the price front, input costs and output charges both increased sharply, although inflation eased for a second consecutive month from January’s VAT-driven spike. Higher raw material and supplier prices, along with tax pass-through effects, remained key drivers of cost pressures. Looking ahead, business confidence improved from February, though overall sentiment remained relatively subdued by historical standards.

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