empty
 
 

2020.06.0308:09:00UTC+00Russia Service Sector Contracts In May

Russia's service sector registered considerable contraction in May, due to the control measures taken to reduce the spread of coronavirus, survey data from IHS Markit showed on Wednesday.

The services Purchasing Managers' Index rose to 35.9 in May from 12.2 in April. Any reading below 50 indicates contraction in the sector. This was the second-fastest decline since early-2009.

Output decreased due to weaker client demand in May. Export demand declined at the second-steepest pace on record, amid the ongoing lockdowns and travel restrictions.

Firms reduced their staffing levels in May and backlogs of work fell considerably as new business inflows declined further.

Negative sentiment eased in May and companies foresee a decline in the business activity in the next 12 months.

On the price front, firms reduced their output charges for the second straight month. The rate of cost inflation was below the long-run series average.

The composite output index increased to 35.0 in May from 13.9 in April. The score suggested contraction in the manufacturing and services sectors.

"Business activity at Russian service providers continued to be stymied by emergency public health measures in response to the COVID-19 pandemic," Si?n Jones, an economist at IHS Markit, said.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback