Russia: Manufacturing and services PMIs fall modestly in December
Leading indicators suggest that business conditions in Russia weakened slightly at the end of 2018. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 52.6 in November to 51.7 in December. That said, the reading still marked one of the highest seen in 2018. The PMI lies above the 50-threshold that separates expansion from contraction in business activity in the sector.
According to IHS Markit, output growth eased somewhat driving the lower PMI reading, although remained solid in the context of historical data. In addition, job creation fell to a three-month low, however new orders grew at a healthy pace reflecting stronger new business from abroad. Business confidence was also a bright spot in the survey, hitting the second-highest reading seen since May 2013. Regarding inflation, price pressures remained elevated, although eased somewhat in December.
Meanwhile, the IHS Markit Russia Services PMI also fell in December, declining from November’s 55.6 to 54.4 and pointing to slower growth in the services sector. Despite the fall, the services PMI still posted the best quarterly average seen in one year in Q4.