REUTERS
The Russia Services Business Activity Index declined to 47.8 in December from 49.8 in November, signaling a deeper slide into contraction in the Russian service sector, according to Markit, a leading global provider of financial information services.
"December survey data signaled a worsening of the downturn in the Russian service sector. A fall in output was reported for the third successive month amid a slight decrease in new business levels. Job cuts continued in the sector as outstanding business deteriorated. Meanwhile, operating margins were under pressure as a marked increase in cost burdens outstripped the modest rise in average tariffs set by firms," the company said in its report.
Meanwhile, Russia's composite index slipped into contraction during December. Scoring 47.8, down from 50.5 in November, the decline in output reflected lower levels of manufacturing production and services activity.
"The weak performance by the service sector has not dampened firms optimism towards future business activity, and although the level of positive sentiment is only slight, panelists still anticipate an increase in output over 2016," Samuel Agass, an economist at Markit said commenting on the Russia Services Purchasing Managers' Index survey data.