Russia: Manufacturing PMI eases in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 50.3 in July, down from June’s 50.9. As such, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions compared to the previous month.
The headline deterioration was mainly driven by a reduction in output due to subdued foreign demand and persistent raw material shortages. In addition, there was a slight fall in employment amid salary competition. More positively, inflationary pressures eased further, with input price growth slowing down and output charges falling at the sharpest pace since 2009. Moreover, new orders expanded at the fastest pace in over three years, boosted by stronger domestic demand. In this context, business confidence rebounded to its pre-war level.
The Consensus sees fixed investment falling 17.3% in 2022, which is up 1.5 percentage points from last month’s projection. For 2023, panelists see fixed investment contracting 3.0%.