Russia's Private Sector Contracts Most Since 2020

(RTTNews) - Russia's private sector activity contracted in March at the fastest pace since 2020 amid heightened economic and geopolitical uncertainty, survey data from S&P Global showed on Tuesday.

The composite output index posted 37.7 in March, down notably from 50.8 in February. A score below 50.0 indicates contraction in the sector.

There was a marked contraction in business activity as manufacturers and service providers alike recorded substantial declines. The services PMI registered 38.1 in March, down from 52.1 in the previous month.

At composite level, the rate of contraction in new orders was the fastest since May 2020, as foreign client demand also fell substantially. Inflationary pressures intensified notably in March as both input prices and output charges soared.

Meanwhile, employment contracted at a faster pace as private sector firms recorded sharp declines in backlogs of work and expectations towards future output.