Russian services contract in May at fastest pace since September 2025, PMI shows
MOSCOW, June 3 (Reuters) - Russia's services sector contracted in May at its quickest pace since September as weaker demand drove steeper falls in new orders and output, a business survey showed on Wednesday. The S&P Global Russia Services PMI Business Activity Index fell to 48.7 in May from 49.7 in April, dropping deeper below the 50 mark that separates growth from contraction. New business fell for a second straight month, with the decline accelerating to its sharpest pace in eight months. Export orders also dropped further, and at the steepest pace since December 2022, S&P Global said. Backlogs of work fell again, with the rate of depletion the steepest in four years, while employment declined for a fourth consecutive month. Cost pressures cooled further, with input price inflation slowing to its weakest since December and below the series average. Output charge inflation also eased for a fourth month and was the weakest so far in 2026. Business confidence weakened sharply as concerns about customer liquidity and demand weighed on the outlook. Optimism about the year ahead fell to its lowest since the current run of positive sentiment began in January 2023. The broader private sector remained under pressure in May. The S&P Global Russia Composite PMI Output Index edged up to 49.2 from 49.1, as a renewed rise in manufacturing output was offset by a faster decline in services activity. (Reporting by Gleb Bryanski; Editing by Hugh Lawson)
