Russia's service sector contracts at fastest pace in 18 months, PMI shows
July 3 (Reuters) -Activity across Russia's services sector contracted in June at its fastest pace since December 2022 as demand weakened and sales fell, a business survey showed on Wednesday.
The S&P Global Purchasing Managers' Index for Russian services fell to 47.6 in June from 49.8 in May, moving further below the 50 mark that separates growth from expansion.
Surveyed firms reported a drop in new sales due to lower purchasing power and a fall in customer numbers, while companies registered a steeper uptick in costs, S&P Global said.
"New export business received by Russian service providers returned to contraction during June, following back-to-back expansions," S&P Global said. "Firms noted that customer demand waned."
Subdued demand lowered firms' expectations for future business, the survey showed.
"Lower new sales weighed on business confidence, as firms recorded the lowest degree of optimism in the outlook since July 2023," S&P Global said.
By contrast, Russia's manufacturing sector grew robustly in June as output and new orders increased and firms took on staff at the fastest pace on record, a sister survey showed on Monday.
Reporting by Alexander Marrow
Editing by Christina Fincher
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