The S&P Global Russia Services PMI fell to 48.7 in May 2026 from 49.7 in April, signaling a third straight month of contraction in the sector. It was also the sharpest downturn since September, reflecting weaker output and a more pronounced drop in new business. In response to softer demand, firms cut staff numbers, although the pace of job shedding slowed to its weakest in three months.
On the cost side, input prices continued to rise, driven by higher supplier charges, energy costs, and wage expenses. Even so, input price inflation eased to its lowest rate since December. Firms raised their own selling prices to pass on part of these higher costs, but output price inflation moderated from January’s recent VAT-related peak and was the softest seen so far in 2026.
Business confidence deteriorated further, with sentiment slipping to its lowest level since late 2022 amid persistent weakness in demand.
