Russia Services Growth Hits 8-Month Low

The S&P Global Russia Services PMI declined to 48.7 in May 2026 from 49.7 in the previous month, marking the third consecutive month of contraction in the sector. The latest reading also marked the steepest contraction since last September, driven by declines in output and a sharper fall in new sales. In line with lower new orders, firms reduced employment, with the pace of job shedding easing to its slowest level in three months. On the price front, input costs rose due to higher supplier prices, energy costs, and wage bills. However, input price inflation eased to its lowest level since last December. Meanwhile, output charges also increased as firms passed higher costs on to customers, although output price inflation slowed from January’s recent VAT-driven peak and was the weakest so far in 2026. Finally, business sentiment weakened to its lowest level since the end of 2022 amid subdued demand.
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