Russia: Services PMI drops to 10-month low in October
November 3, 2021
The IHS Markit Services Purchasing Managers’ Index (PMI) came in at 48.8 in October, down from September's 50.5. October's result marked the weakest reading since December 2020. As such, the index dropped below the 50-threshold, signaling a deterioration in business conditions from the previous month.
The downturn came on the back weaker client demand, which drove a renewed contraction in new business. This was chiefly due to the reintroduction of some lockdown measures at the outset of Q4 amid a resurgence in new Coivid-19 cases. As a result, backlogs of work continued to decrease, while reduced pressure on capacity led to yet another decline in employment. Lastly, optimism over future outlook softened slightly in October.
Meanwhile, the Composite PMI fell to 49.5 in October, from 50.5 in September.