Russia PMI August 2020


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.

FocusEconomics Consensus Forecast panelists project fixed investment will plunge 9.7% in 2020, which is down 0.5 percentage points from last month’s forecast. In 2021, the panel sees fixed investment growing 5.4%.

Author: Angela Bouzanis, Lead Economist

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Russia PMI Chart

Russia PMI August 20 20

Note: IHS Markit Purchasing Managers’ Index (PMI). Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.

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