Russia: Services PMI records worst reading since March in October

The S&P Global Russia Services PMI Business Activity Index came in at 43.7 in October, down from September's 51.1. October's result marked the worst performance since March. Consequently, the index dropped below the 50.0 no-change mark, signaling a marked deterioration in services sector operating conditions from the previous month.

The result was came on the back of a sharp steep fall in output amid plunging new business, due to weak domestic and foreign client demand. As a result, pressure on capacity dropped, leading firms to slash their workforce numbers at the fastest pace was since May 2020. Meanwhile, business confidence turned pessimistic due to uncertainty regarding future demand.

Meanwhile, the S&P Global Composite Output Index clocked in at 45.8 in October, down from September’s 51.5.

FocusEconomics panelists expect private consumption to shrink 2.3% in 2023, which is up 0.2 percentage points from last month’s projection. For 2024, panelists see private consumption rising 2.1%.