Business activity in the service sector fell to the lowest level in ten months

The business activity index (PMI) in the services sector in Russia in January 2016 fell to 47.1 from 47.8 points in December. This is evidenced by data of the analytical Agency Markit, published on 3 February.

The Agency recorded in January, a substantial decline in business activity caused a significant reduction in new orders that led to the fall in backlogs of work.

However on the background of pessimistic expectations across the sector there was also a decline in employment. Input prices continued to increase faster than average selling. Study participants reported about stagnation on the market and adverse currency fluctuations.

According to the economist of Markit Samael Agassi, head data of index PMI pointed to further signs of a slowdown in the service sector in Russia in early 2016. “With fewer new firms continued to cut jobs at an accelerated pace,” he added.

A PMI score above 50 points indicates growth of business activity, below — to slow down.

1 February Markit released data on business activity index in the manufacturing sectors in Russia. In January this figure rose to 49.8 from 48.7 points in December, however, necessary for the growth of 50 points scored.