Russia: Manufacturing PMI rises in August but remains in contractionary territory
September 3, 2018
Business conditions in Russia’s manufacturing sector improved somewhat in August. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose from 48.1 in July to 48.9. Despite the rise, the PMI lies below the 50-threshold that separates contraction from expansion in business activity in the sector.
According to IHS Markit, improvements in output and new orders led to the modest uptick in the PMI, although both categories still posted contractions overall. In addition, the rate of job shedding eased in August. Regarding inflation, a weak ruble and higher commodity prices caused price pressures to rise in August. On a bright note, business confidence improved in the month.
Russia Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists project fixed investment will expand 2.9% in 2018, which is unchanged from last month’s forecast. In 2019, the panel expects fixed investment to grow 2.8%.