Russia's services sector contracts for first time in six months

Russia's services sector contracted in April for the first time in six months, as shown by the Purchasing Managers' Index (PMI) data reported by Reuters. This decline represents a notable shift after a period of sustained growth, partly fueled by international sanctions and economic adjustments. Experts point to ongoing inflationary pressures and a drop in domestic demand as key factors behind the downturn, impacting business confidence and commercial activities. Despite this setback, other areas such as manufacturing have demonstrated resilience, though Russia's economy continues to face challenges from geopolitical tensions and financial constraints.