Russia's service sector contracts for second month running - PMI
Reuters
Published Dec 05, 2022 01:18AM ET
MOSCOW (Reuters) - Conditions in Russia's services industry declined for the second month running in November, a business survey published Monday showed, as companies continue to face pressure from Western sanctions, weak consumer demand at home and logistics challenges.
The S&P Global (NYSE:SPGI) Purchasing Managers' Index (PMI) for Russian services climbed to 48.3 after hitting an eight-month low of 43.7 a month earlier - but remained below the crucial 50 mark that separates expansion from contraction.
In a significant turnaround from a month earlier - when the impact of President Vladimir Putin's order to call up more than 300,000 reservists to fight in Ukraine was weighing on the economy - firms reported only a "marginal decline in new business" during November, S&P Global said.
The mobilisation order saw demand fall across the economy, as hundreds of thousands of men joined the army or fled Russia and a fresh wave of economic uncertainty hit the country.
The latest PMI surveys - closely watched indicators of economy performance - show signs that Russian firms are tentatively recovering from the initial economic blow.
A sister survey published last week showed Russia's manufacturing industry expanded at its fastest pace in almost six years during November.
But Russian service companies are far from out of the woods just yet, as they face a host of challenges due to sanctions and the ongoing impact from what Russia calls a "special military operation" in Ukraine.
Export orders fell faster in November than a month earlier, S&P Global said, while domestic demand remained weak, with employment levels falling and prices for supplies and logistics on the rise.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.