Russia: Manufacturing PMI falls in February
March 1, 2022
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 48.6 in February from January's 51.8. Consequently, the index dropped below the 50-threshold, signaling a deterioration in business conditions from the previous month and marking the worst reading since August 2021.
The downturn came on the back weaker consumer demand at home and abroad, with output and new orders slipping for the first time in six months. As a result, employment levels declined in February, as shrinking backlogs of work pointed to lower production requirements.
Commenting on the inflationary backdrop and production output, Siân Jones, senior economist at IHS Markit, noted:
"Inflationary pressures were pushed up once again, amid hikes in supplier costs and a greater deterioration in vendor performance. Despite muted client demand, firms adjusted their selling prices upwards, with charges also rising at the fastest pace for eight months. Nonetheless, manufacturers remained upbeat regarding the outlook for output over the coming year. Optimism was not dampened by current subdued demand and ongoing headwinds, and reached its highest level since August”.
Author: Almanas Stanapedis, Research Team Manager