Russia PMI March 2020

Russia: Services and Composite PMIs dive to over 11-year lows in March

The IHS Markit Russia Services Business Activity Index sank to 37.1 in March, from 52.0 in February, marking the weakest result in over 11 years. As a result, the index dived sharply below the critical 50-threshold, signaling a dramatic contraction in business activity across the Russian service sector at the end of the first quarter.

The deterioration was driven by the strict containment measures put in place by the government to tackle the spread of the Covid-19 pandemic. This, coupled with widespread global lockdowns hammered both domestic and external demand, leading to the sharpest contractions in output and new orders since the Global Financial Crisis of 2009. Furthermore, increasing fears of a global and domestic recession turned business confidence negative and sent it tumbling to a record-low in March.

In a similar fashion, the Russia Composite Output Index plunged to an over decade-low of 39.5 in March, from 50.9 in February.

Commenting on composite result, Sian Jones, an economist at IHS Markit, noted:

“The Russian service sector was greatly impacted by the outbreak of COVID-19 in March […] At the composite level, private sector output fell at the quickest rate for over 11 years, with the first quarter ending on a negative note. Our current forecast signals broad stagnation across the Russian economy in 2020, with contractions expected in the middle quarters of the year. Meanwhile, inflationary pressures have accelerated, as the base effect from last January’s VAT hike faded. The rate of inflation is forecast to quicken throughout 2020.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest