Russia's services expanded for a fourth straight month in May, although at a slower pace than it grew in April, the Markit purchasing managers index (PMI) showed on Friday. The index's headline figure fell to 51.8 in May from 54.2 in April, staying above the 50 mark that separates expansion from contraction. "The Russian economy has been making steady progress so far in 2016, with the latest surveys suggesting that this positive start to the year was built on in May," said Rob Dobson, senior economist at Markit. "Although growth slowed slightly in the service economy, its recovery extended into a fourth month."
New business orders rose for the fourth month in a row. Job-cutting was at a nine-month low. Over 27 percent of companies expected business activity to increase in the coming year, compared with 18 percent expecting a decrease. Russia's economy is showing signs of recovery, after slumping by 3.7 percent in 2015. It is now forecast to contract this year by less than previously expected.