The IHS Markit Russia Services PMI fell to 53.1 in December 2019, the lowest since August, from 55.6 in the previous month. Employment increased for the fourth month running, albeit at the slowest pace since September, while companies continued to register a reduction in pressure on capacity as backlogs of work fell at a solid and accelerated pace. Meanwhile, domestic and foreign client demand improved, with firms signalling a renewed rise in new export orders. On the price front, cost burdens increased at the sharpest rate for four months, while output charge inflation softened to a moderate pace that was the second-slowest since September 2018. Finally, business confidence fell to the lowest for over two years. Services PMI in Russia averaged 52.75 Index Points from 2010 until 2019, reaching an all time high of 58.40 Index Points in January of 2017 and a record low of 41.30 Index Points in February of 2015. source: Markit Economics
Services PMI in Russia is expected to be 54.30 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Russia to stand at 53.60 in 12 months time. In the long-term, the Russia Services PMI is projected to trend around 54.50 Index Points in 2020, according to our econometric models.