Russia: Manufacturing PMI jumps into expansionary territory, while services PMI recedes slightly in August
September 3, 2020
The IHS Markit Russia Manufacturing PMI jumped to 51.1 in August, pointing to expansionary conditions in the sector for the first time since April 2019 (July: 48.4). Growing output and a rebound in new orders drove the upturn as market conditions normalized amid the easing of coronavirus restrictions. In addition, the decline in employment slowed, while inflationary pressures intensified in the month, partly linked to currency weakness.
Meanwhile, the IHS Markit Russia Services Business Activity Index edged down to 58.2 in August, from 58.5 in July. Despite the fall, the index still lies well above the critical 50-threshold, pointing to a marked expansion in business activity across the Russian services sector. Output continued to grow and new business rose at a sharp pace in August, albeit softer than July’s increase. That said, new business from abroad dropped suggesting that foreign demand is still fragile due to fallout from the coronavirus pandemic. Notably, firms added workers for the first time in six months.
Overall, the IHS Markit Composite Output Index rose to 57.3 in August, up from 56.8 in July.