Russia Services PMI

The S&P Global Russia Services PMI fell to 49.5 in March 2026 from 51.3 in February, entering contraction territory and marking the first decline in six months. The drop was driven by softer demand conditions, with new orders broadly unchanged. Some firms reported stable customer numbers, while others cited weaker purchasing power, rising uncertainty, and lost business linked to the Middle East conflict. Meanwhile, employment declined at the fastest pace since early 2023, as firms cut costs amid weaker sales. On the price front, input costs and output charges both increased sharply, although inflation eased for a second consecutive month from January’s VAT-driven spike. Higher raw material and supplier prices, along with tax pass-through effects, remained key drivers of cost pressures. Looking ahead, business confidence improved from February, though overall sentiment remained relatively subdued by historical standards.

The S&P Global Russia Services PMI fell to 51.3 in February 2026 from 53.1 in January, signaling a modest upturn in business activity at the slowest pace in five months. New orders continued to rise for the fourth consecutive month, supported by steady customer demand, but growth slowed to its weakest since November 2025. Meanwhile, service sector employment fell for the second time in three months, although job losses were only fractional, with many firms citing voluntary leavers who were not replaced. On the price front, input costs rose sharply in February. While easing from January’s VAT-driven highs, inflation remained the second-fastest since January 2025, driven by higher fuel and utility prices. Output charges also increased steeply, marking the second-fastest rise since October 2023. Looking ahead, business confidence slipped to its lowest level since December 2022, as higher costs weighed on growth expectations despite continued optimism about demand.

The S&P Global Russia Services PMI climbed to 53.1 in January 2026 from 52.3 in December, signaling a fourth consecutive month of expansion. The reading also marked the fastest expansion in the services sector since January 2025, as growth in output and new orders gained momentum. Stronger demand conditions also supported a fresh rise in employment. On the price front, both input and output costs rose, partly driven by higher value-added tax. However, input cost inflation eased to its lowest level since May 2009, reflecting reduced wage bills following lower employment and a moderation in some material prices. Meanwhile, output charges rose solidly as firms continued to pass higher costs on to customers. That said, output inflation eased to a seven-month low and remained below its long-term average. Looking ahead, business sentiment ticked down to its second-weakest level since January 2023.