By Andrey Ostroukh
MOSCOW--Russia's services sector activity contracted for the
first time in three months in June, reflecting spare capacity amid
weak consumer demand, a Markit survey of purchasing managers showed
Friday.
The Purchasing Managers' Index for the services sector fell to
49.5 in June from 52.8 in May, sliding below the 50 mark, which
separates growth from contraction.
"The PMI data for Russia continue to underwhelm, with slight
falls in activity registered across the private sector in June. As
spare capacity remains evident, jobs subsequently continue to be
cut," Paul Smith, senior economist at Markit, said in the PMI
report.
Markit said majority of services sector companies left their
output prices unchanged in June, which sent the inflation rate to a
10-month low.
Despite a volatile ruble and Western sanctions, the PMI survey
showed that businesses in the services sector remained optimistic
in June for the fourth month in a row. A number of the polled
companies said they were forecasting better macroeconomic
environment, both domestically and globally.
"Compared to earlier in the year, operating conditions have
shown some relative stability during recent months. Companies are
hoping that this will provide a platform for future growth, with
service providers forecasting growth of activity over the coming
year - subject to a general pick-up in the wider economic
environment," Mr. Smith said.
Earlier this week, another PMI survey showed that activity in
Russia's manufacturing sector deteriorated marginally in June, as
output, new orders and employment all fell.
Write to Andrey Ostroukh at andrey.ostroukh@wsj.com