Russia: Manufacturing PMI deteriorates in October

The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 50.7 in October, down from September's 52.0. Consequently, the index remained just above the 50.0 no-change threshold, pointing to a softer improvement in manufacturing sector operating conditions from the previous month.

The downturn came on the back of weaker growth in both output and new orders. In turn, backlogs of work continued to shrink in October, while employment levels declined amid staff shortages. Meanwhile, rising logistics and transportation expenses underpinned an sharper rise in cost burdens for manufacturing firms. Output charges were broadly unchanged, however, suggesting firms struggled to pass on hikes in costs to their customers. Finally, expectations over future output weakened slightly in October, although the degree of confidence was the second-highest since April 2019.

FocusEconomics see fixed investment falling 5.5% in 2023, which is down 0.1 percentage points from last month’s projection. For 2024, panelists see fixed investment increasing 2.6%.