# Russian services activity shrinks for third month running in Dec -PMI
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Russian Services Industry Shrinks for Third Consecutive Month
Meta Description: Discover how economic uncertainty, inflation, and geopolitical tensions are impacting Russia's services sector. Get insights from the latest S&P
URL: https://financedigest.com/russian-services-activity-shrinks-for-third-month-running-in-dec-pmihtml

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MOSCOW (Reuters) – Activity in Russia’s services industry shrank for the third month running in December, a survey showed on Friday, as companies faced weak consumer demand at home, severe inflationary pressure and declining customer numbers.

The S&P Global Purchasing Managers’ Index (PMI) for Russian services fell to 45.9 from 48.3 a month earlier, dropping further below the 50 mark that separates expansion from contraction.

Companies noted that the reduction in new business was due to economic uncertainty and a drop in purchasing power at clients amid severe inflationary pressures, S&P Global said in a statement.

Annual inflation is forecast at 5%-7% in 2023, down from this year’s double-digit readings, but still above the [central bank’s](https://www.financedigest.com/dollar-skulks-at-eight-month-low-central-bank-meetings-in-focus.html "Dollar skulks at eight-month low, central bank meetings in focus") 4% target.

Geopolitics has hit the [services sector](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…") particularly hard, with Western sanctions against Russia over its actions in Ukraine compounding logistics problems for Russian firms.

[Business confidence](https://www.financedigest.com/five-tips-for-building-business-confidence.html "Five tips for building business confidence") slumped in December, to 45.8 from 61.3 the month before.

Global economic uncertainty and the impact of [inflation on customer purchasing power reportedly dented](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins") sentiment markedly,” S&P Global said. The level of [sentiment was at its lowest since](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war") March.

A sister survey on Thursday showed Russia’s manufacturing [activity expanded in December as domestic demand](https://www.financedigest.com/global-factory-activity-weakens-as-demand-falters.html "Global factory activity weakens as demand falters") outweighed falling export sales, leading to the fastest monthly job creation in the sector in over 21 years.

(Reporting by Alexander Marrow; Editing by Hugh Lawson)


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