The S&P Global Russia Services PMI declined to 48.2 in June 2026 from May’s 48.7, marking the fourth consecutive month of contraction in the sector. The latest reading also marked the steepest contraction since last September, driven by sharper declines in both output and new orders. In line with lower new orders, firms reduced employment for the fifth consecutive month, with the pace of job shedding the steepest in three and a half years. On the price front, input costs rose due to higher transportation fees and wage bills. However, input price inflation eased for the fifth consecutive month, down from January’s VAT-driven peak. Meanwhile, output charges also increased as firms passed higher costs on to customers, although output price inflation slowed to its lowest level since January 2021. Looking ahead, business sentiment remained weak, reaching its second-lowest level since December 2022.

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