S&P Global’s June survey showed a fourth straight drop in service-sector output, weaker new orders and the steepest job shedding in three-and-a-half years as demand and client finances deteriorated.
Russia's services sector shrank further in June, with the S&P Global Russia Services PMI Business Activity Index slipping to 48.2 from 48.7 in May, remaining below the 50 threshold that separates growth from contraction. Output fell for a fourth consecutive month and new business declined for a third straight month, with firms citing weaker client demand, reduced customer purchasing power and clients' financial difficulties. Employment fell for a fifth month as companies cut costs and did not replace voluntary leavers, producing the sharpest pace of job shedding in three-and-a-half years. Backlogs also dropped sharply, while input cost and selling price inflation both eased. Businesses stayed optimistic about the year ahead, but confidence remained subdued, and the composite index signaled private-sector output contracted at its fastest pace in three months.