Russia Services PMI falls to 51.3 in Feb from 53.1 in Jan - S&P Global

MOSCOW. March 4 (Interfax) - The Russia Services PMI fell to 51.3 points in February from 53.1 points a month earlier, S&P Global research data show.

The latest data point to the weakest growth of business activity in the sector in the past five months.

The Russia Composite Output Index, which tracks activity in both the services and manufacturing sectors, dropped to 50.8 points in February from 52.1 in January.

Index readings above 50.0 points indicate growth in business activity, while those of less than 50.0 show a decline.

The level of new orders continued to grow in February amid an improvement in client demand, but at the slowest pace since November 2025.

Companies' costs increased significantly. The rate of input price inflation, although having slowed from January's two-year high, still remained the second fastest after the previous month. Some respondents noted an increase in supplier prices following the VAT hike, while others cited rising fuel costs and utility expenses.

Release prices also soared, as companies tried to pass costs on to clients. The rate of selling price inflation was the second fastest since October 2023.

The reduction in employment resumed in February after growth in January. The pace of job cuts was only marginal.

Amounts of outstanding work increased at a faster pace, despite the modest growth in new orders. The rate of accumulation of backlogs became the highest since December 2024.

According to the results of the February survey, companies were less positive about the sector's prospects for the next 12 months. The degree of optimism was the lowest since December 2022. Respondents expressed hopes for an improvement in client demand, but increased costs caused serious concern.