Russia: Manufacturing PMI falls in January
February 4, 2019
Leading indicators suggest that business conditions in Russia weakened slightly at the start of 2019. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 51.7 in December to 50.9 in January, a four-month low. The PMI lies above the 50-threshold that separates expansion from contraction in business activity in the sector.
According to IHS Markit, output and new order growth both eased, leading to the lower PMI reading. In addition, firms shed jobs for the first time since August 2018. However, business confidence was a bright spot in the survey, recording a historically optimistic reading in January. Regarding inflation, price pressures intensified linked to the VAT tax hike at the start of the year.
Russia Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists project fixed investment will expand 2.4% in 2019, which is unchanged from last month’s forecast. In 2020, the panel expects fixed investment to grow 2.5%.