Russia: Manufacturing PMI hits highest reading since January in August
September 2, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 51.7 in August, up from July's 50.3. August's result marked the strongest reading since January. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions in the private sector compared to the previous month.
The upturn came on the back of a stronger increase in output and as new business expanded at the fastest pace since April 2019. Notably, external sales fell at the fastest pace since May, dragging on the overall reading. Meanwhile, despite stronger demand conditions, employment levels continued to decrease, while backlogs of work shrank further.
With regards to prices, input costs rose at the slowest rate since February 2020, amid moderating commodity prices. In contrast, output charges increased for the first time in three months. Lastly, business confidence softened in August, although it remained generally upbeat.
The Consensus sees fixed investment falling 17.3% in 2022, which is up 1.5 percentage points from last month’s projection. For 2023, panelists see fixed investment contracting 3.0%.
Author: Almanas Stanapedis, Research Team Manager