"Russian service providers end 2015 on a dull note, as the headline figure registered comfortably below the 50.0 no-change mark. This will come as disappointing news to the sector, which looked to be veering towards stability in November," said Samuel Agass, economist at Markit, which compiles the survey.
He added that the decline in business activity had been driven by a fall in new business, in part reflecting payment problems among services firms' customers. Job cuts in the service sector also continued, having occurred each month since March 2014. Businesses expected an increase in output next year, although the balance of positive sentiment was slight, with 31 percent foreseeing an increase and 26 percent a decline. The gloomy services reading follows a similar survey for the manufacturing sector, which also showed a deterioration in December. Russia's economy is expected to contract by around 4 percent in 2015, with prospects for a recovery next year knocked back by a renewed slide in the price of oil, Russia's main export and an important source of government revenues. Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.