Russia: Manufacturing PMI hits highest reading since January in June
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) ticked up to 50.9 in June from May’s 50.8. June’s result marked the best reading since January. As such, the index inched up further above the 50.0 no-change threshold, signaling a faster improvement in business conditions compared to the previous month.
June’s reading pointed to a marginal improvement in the performance of the Russian manufacturing. That said, output continued to decline at the end of Q2, chiefly due to lower exports and persistent shortages of raw materials. More positively, employment returned to growth in June, while sentiment was boosted by rising new orders. Lastly, a softer increase in input costs drove to the first fall in output charges at Russian manufacturers in over four years, signaling that inflationary pressures peaked in the middle of Q2.
FocusEconomics panelists see fixed investment falling 20.0% in 2022, which is up 0.6 percentage points from last month’s projection. For 2023, panelists see fixed investment contracting 2.6%.