The service sector in Russia is still alive
2022.12.05 01:41
The service sector in Russia is still alive
Budrigannews.com – A business survey that was released on Monday revealed that conditions in Russia’s services industry declined for the second month in a row in November.
This was due to companies continuing to face pressure from Western sanctions, weak domestic consumer demand, and logistical difficulties.
The Global S&P (NYSE:)The Purchasing Managers’ Index (PMI) for Russian services increased to 48.3 from 43.7, which was an eight-month low, but it remained below the crucial 50 threshold, which distinguishes expansion from contraction.
According to S&P Global, businesses only reported a “marginal decline in new business” in November, a significant turnaround from a month earlier, when the impact of President Vladimir Putin’s order to call up more than 300,000 reservists to fight in Ukraine was weighing on the economy.
As hundreds of thousands of men joined the army or fled Russia following the mobilization order, a new wave of economic uncertainty struck the nation.
The most recent PMI surveys, which are closely watched indicators of how well the economy is doing, show signs that Russian businesses are starting to recover from the first economic blow.
Russia’s manufacturing sector expanded at its fastest rate in almost six years during November, according to a companion survey that was released last week.
However, sanctions and the ongoing impact of what Russia calls a “special military operation” in Ukraine pose a number of obstacles for Russian service providers, leaving them far from safe.
According to S&P Global, domestic demand remained weak in November, with employment levels falling and prices for supplies and logistics rising, while export orders fell faster than in the previous month.
