Activity in Russia's services industry shrank for the third month running in December, a survey showed on Friday, as companies faced weak consumer demand at home, severe inflationary pressure and declining customer numbers.
The S&P Global Purchasing Managers' Index for Russian services fell to 45.9 from 48.3 a month earlier, dropping further below the 50 mark that separates expansion from contraction.
Companies noted that the reduction in new business was due to economic uncertainty and a drop in purchasing power at clients amid severe inflationary pressures, S&P Global said in a statement. Annual inflation is forecast at 5%-7% in 2023, down from this year's double-digit readings, but still above the central bank's 4% target.
Geopolitics has hit the services sector particularly hard, with Western sanctions against Russia over its actions in Ukraine compounding logistics problems for Russian firms."Global economic uncertainty and the impact of inflation on customer purchasing power reportedly dented sentiment markedly," S&P Global said. "The level of sentiment was at its lowest since March."
A sister survey on Thursday showed Russia's manufacturing activity expanded in December as domestic demand outweighed falling export sales, leading to the fastest monthly job creation in the sector in over 21 years.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Domestic demand drives growth in Russian factory activity in Dec -PMIDomestic demand more than made up for falling export sales to drive growth in Russian manufacturing in December, a survey showed on Thursday, leading to the fastest monthly rise in job creation in the sector in over 21 years.
Read more »
AUD/JPY drops below $90.00 as focus shifts to China’s official PMI dataThe AUD/JPY pair has surrendered the psychological support of 90.00 in the Asian session. The risk barometer has sensed a sell-off move as a spike in
Read more »
NZD/USD drops to near 0.6300 as US Dollar attempts recovery, China’s official PMI in focusNZD/USD drops to near 0.6300 as US Dollar attempts recovery, China’s official PMI in focus – by Sagar_Dua24 NZDUSD PMI Fed Coronavirus DollarIndex
Read more »
Alameda's Ethereum (ETH) Addresses See Intense ActivityTransactions come just days after SBF_FTX was released on a $250 million bond
Read more »
Flurry of activity in 2022 has Jax's tech sector prepared for coming yearThe region saw growth for existing companies, and new ones announce their arrival. Local companies acquired and were acquired while others expanded their workforces.
Read more »
Utah junior high staff member arrested, accused of sexual activity with studentA woman who takes attendance at a South Salt Lake junior high school was arrested Tuesday and accused of engaging in sexual activity with a student on several occasions.
Read more »