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Russia's service sector contraction was the slowest in four months in June as firms started reopening after the restrictions to slow the spread of the coronavirus were eased, survey data from IHS Markit showed on Friday

The services Purchasing Managers' Index rose to 47.8 in June from 35.9 in May. Any reading below 50 indicates contraction in the sector.

The pace of decline in output and new business eased with the rate of contraction in the latter being the slowest in four months.

Export sales decreased in June at sharp rate, albeit slower than April's record. Employment fell further with the rate of contraction fastest since January 2016.

Backlogs of work declined steeply in June with the rate of reduction fastest in the long-run series average.

The degree of confidence was below the series trend as the pandemic continued to weigh on expectations.

Output prices fell in June, while input prices rose as suppliers began to hike costs as demand for inputs increased.

The composite output index increased to 48.9 in June from 35.0 in May. That marked the slowest decline in activity since February.

"The damage done in the second quarter looks set to weigh on economic growth as our latest forecast for 2020 indicates an expected 8.6 percent decline in GDP," Si?n Jones, economist at IHS Markit, said.



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