OREANDA-NEWS. The Business Activity Index (PMI) in the Russian services sector in April 2020 fell to 12.2 points from 37.1 points a month earlier. According to a study by the IHS Markit analytical agency, the indicator is the lowest since the start of the study in 2001.

“The Russian services sector in April indicated the sharpest decline in business activity in the history of the study, since the impact of extreme restrictions after the outbreak of coronavirus (COVID-19) was felt throughout the services sector. The decrease was due to both a temporary closure of the business and a significant drop in demand from parties of customers who kept costs and postponed placing orders. As a result, companies significantly reduced the number of employees against the backdrop of growing reserve capacities", the report says.

IHS Markit noted that the volume of new orders in April decreased due to their cancellation or postponement against the background of the self-isolation regime. Demand from foreign customers also decreased, while the pace of decline in export of services fell at the highest pace since September 2014.