FX.co ★ Russia Services Sector Returns to Contraction

The S&P Global Russia Services PMI slipped to 49.2 in June 2025, down from a four-month peak of 52.2 observed in May, signalling the first contraction in a year. This downturn is attributed to subdued demand and a modest increase in new sales. Employment witnessed only a slight decline, improving from May's rate, while work backlogs continued to rise for the eighth month in succession. On the pricing front, input costs escalated due to increased supplier prices and higher wage expenses, although the overall input inflation hit its lowest in just over five years. Output price inflation also eased, reaching its lowest point in nearly four and a half years, as businesses endeavored to boost sales. Furthermore, business sentiment fell to its weakest since July 2023, reflecting mounting apprehensions about challenges in the sales landscape.