Russia: Manufacturing PMI drops into contractionary territory in May
May 7, 2018
Business conditions in Russia’s manufacturing sector deteriorated notably in May. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 51.3 in April to 49.8 in May, the worst reading since July 2016. As a result, the PMI lies below the 50-threshold that separates contraction from expansion in business activity in the sector.
According to IHS Markit, growth in new orders and output lost pace in May, while employment and stocks of purchases fell driving the decline in the index. Business sentiment also slipped, although still remained healthy overall. Regarding inflation, a weak ruble caused price pressures to remain high in May, recording the second-highest rise charge inflation seen in the nearly two years.