The S&P Global Russia Services PMI slipped to 49.5 in March 2026 from 51.3 in February, dipping into contraction territory and posting its first decline in six months. The downturn reflected softer demand conditions, with overall new orders broadly unchanged. While some companies reported steady client numbers, others pointed to weaker purchasing power, rising uncertainty, and the loss of business related to the conflict in the Middle East.
Employment fell at the fastest rate since early 2023, as firms sought to reduce costs in response to softer sales. On the price side, both input costs and output charges rose sharply, although the pace of inflation moderated for a second consecutive month, easing further from January’s VAT-driven surge. Higher raw material and supplier prices, together with the pass-through of tax increases, continued to underpin cost pressures.
Looking ahead, business confidence improved compared with February, but overall sentiment remained relatively muted by historical standards.
