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Why Is Russia’s Services PMI Weakening Gradually?

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Russia Services PMI in June

According to a report by Markit Economics, the Russia Services PMI has been weakening gradually since April. It was 52.3 in June compared to 54.1 in May. It didn’t meet the preliminary market expectation of 52.5.

The weaker rise in the Russia Services PMI in June was mainly due to the following:

  • Production output and volume rose at a softer pace in June.
  • New orders and export orders in the services sector weakened in June.
  • Employment in the services sector saw a weaker rise in June.

Manufacturing and services activity in Russia saw some weakness in June. Rising uncertainty about the global trade environment and weaker domestic demand mainly weighed on the country’s economic activity. However, businesses remained optimistic about the year-end demand outlook.

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ETF performances in June

The iShares MSCI Russia Capped ETF (ERUS), which tracks the performance of Russia’s economy (RSX), rose 0.5% in June. However, the VanEck Vectors Russia Small-Cap ETF (RSXJ) fell 3.8%.

In the next part of this series, we’ll analyze the performance of the Brazil Manufacturing PMI in June.

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