Russia’s services sector shrinks amid western sanctions over Ukraine

Russia’s services sector shrinks amid western sanctions over Ukraine

Russia’s services sector has suffered the worst slump in activity since the Covid-19 pandemic hit in 2020 as consumers and businesses cancelled orders amid increasingly severe western sanctions after the invasion of Ukraine.

A closely watched business survey showed that new orders during March dived as restrictions on imports and exports began to bite and inflation raised the price of services at the fastest rate on record.

The S&P Global purchasing managers’ index (PMI) collapsed to 38.1 in March from 52.1 the previous month, sliding well below the 50 mark that separates expansion from contraction.