Russia: Economic conditions firm in April
May 7, 2018
Business conditions in Russia’s manufacturing sector improved modestly in April. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose from 50.6 in March to 51.3 in April, a three-month high. As a result, the PMI lies further slightly above the 50-threshold that separates expansion from contraction in business activity in the sector.
According to IHS Markit, growth in output quickened in April and stronger client demand fueled new orders. Firms also added jobs at the fastest pace since January 2017, although gains were still modest overall. Regarding inflation, a weaker ruble caused price pressures to rise notably in April, pushing up the prices of raw materials. On a positive note, business confidence hit the highest level since May 2015.
Meanwhile, activity in the services sector also gained steam in April. The Services Business Activity Index produced by IHS Markit rose from 53.7 in March to 55.5 in April. The indicator remains firmly in expansionary territory.
Russia Fixed Invesment Forecast
FocusEconomics Consensus Forecast panelists project fixed investment will expand 2.7% in 2018, which is unchanged from last month’s forecast. In 2019, the panel expects fixed investment to grow 3.0%.