Russia: Services PMI drops in December, while manufacturing PMI gains some ground
The IHS Markit Russia Services Business Activity Index came in at 53.1 in December, down from November’s 55.6. That said, the index remained above the critical 50-threshold, signaling a solid improvement in business activity across the Russian service sector. The result chiefly reflected softer output and employment growth, despite a stronger rise in new orders. Moreover, business sentiment dropped to the lowest point since August 2017, amid reports of more intense competition.
Meanwhile, the Russia IHS Markit Manufacturing PMI rose to 47.5 in December from 45.6 in November amid a slower fall in new orders. The result points to some convergence of Russia’s two-speed economy, which has shown divergent dynamics in the services and manufacturing sectors.