Russia: Manufacturing PMI drops to nearly two-year low in June
July 2, 2018
Business conditions in Russia’s manufacturing sector continued to deteriorate in June. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 49.8 in May to 49.5, the worst reading since July 2016. As a result, the PMI lies further below the 50-threshold that separates contraction from expansion in business activity in the sector.
According to IHS Markit, output growth fell and new orders dropped in June, leading to the decline in the index. Business sentiment also slipped to a six-month low, although still remained healthy overall. Regarding inflation, a weak ruble and higher oil prices caused price pressures to remain high in June.