Russia Services PMI Hits 13-Month Low

The S&P Global Russia Services PMI declined to 48.6 in July 2025 from June’s 49.2, marking the second consecutive month of contraction. This was the steepest decline since June of last year, driven by a reduction in new orders and weak client demand. Business activity fell, ending a 12-month streak of growth, and contracted at the fastest pace since January 2023 due to lower customer numbers and subdued sales conditions. Although new business declined, firms increased employment at the fastest rate since February, anticipating future growth in sales. Meanwhile, backlogs of work rose slightly. On the price front, input cost inflation accelerated, driven by higher utility, supplier, and staffing expenses. Selling prices also rose as companies sought to pass on these increased costs to customers. Looking ahead, business sentiment improved to a three-month high, supported by hopes of more stable economic and financial conditions.