Russia's PMI business activity index in the service sector fell to 49.3 points in August from 53.5 points in July. Data from research organisation Markit showed this.

"The latest data shows the first decline in service sector output since December 2020, albeit a small overall decline. Where a decline in business activity was reported, companies attributed it to weaker demand and a further slowdown in new order growth," the report said.

As service providers explained, this could be due to tougher demand conditions in August. Pressure on manufacturing capacity has further weakened, forcing companies to downsize after a six-month period of job creation, explained economist Sian Jones of IHS Markit.

Earlier, the Russian Union of Industrialists and Entrepreneurs (RSPP) stated that the business climate in the country was the most favourable for the last 12 months in August.

Made in Russia / Made in Russia

Author: Maria Buzanakova