Russia: Manufacturing PMI rises but remains in negative territory in April
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 48.2 in April, up from March’s 44.1. Consequently, the index moved closer to the 50.0 no-change threshold, signaling a continued, albeit somewhat softer, deterioration in business conditions compared to the previous month.
The overall reading chiefly reflected a sustained sharp contraction in manufacturing output; output fell at the second-fastest rate since May 2020. This came amid falling new orders as international sanctions began to bite, in turn hammering external demand. Meanwhile, soaring inflation ate into customers’ purchasing power at home. Meanwhile, input costs shot up in April on a weaker ruble and shortages of raw materials, with manufacturers passing through higher cost burdens to clients. Lastly, output expectations were historically subdued in April, though they remained in optimistic territory.
Currently, the Consensus sees fixed investment falling 20.6% in 2022, which is down 14.2 percentage points from last month’s projection. For 2023, panelists see fixed investment contracting 2.7%.