FX.co ★ Russia Services PMI Falls to 9-Month Low

The S&P Global Russia Services Purchasing Managers' Index (PMI) decreased to 50.1 in March 2025, slightly down from 50.5 in February. This represents the slowest expansion in the services sector since June of the previous year, which had witnessed a contraction. This latest figure signifies the ninth consecutive month of growth within the sector; however, it is hovering on the brink of stagnation due to subdued demand. The rate of new business growth reduced for the second successive month as purchasing power waned. There was minimal change in output levels, reflecting reduced growth in new orders. Employment declined for the first time since July 2023, experiencing the most substantial drop in over two years, whereas backlogs of work increased for the fifth consecutive month. Regarding pricing, input cost inflation reduced to its second-lowest level since July 2020, and output inflation decreased to the lowest point since January 2021, as businesses sought to boost sales. Finally, business sentiment reached a 10-month high due to optimism about improving demand conditions.