Russia: Manufacturing PMI ticks down August amid slumping new orders
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit edged down to 49.1 in August from 49.3 in July. As a result, the index moved further below the critical 50-point mark, signaling that activity in the manufacturing sector contracted for the fourth consecutive month.
August’s deterioration was chiefly driven by faltering new orders, which shrank at the fastest pace in over four years as external demand continued to weaken. The sustained decline in new business prompted Russian manufacturers to once again reduce output levels and cut workforce numbers. On top of that, backlogs of work fell sharply in August.
On a more positive note, confidence towards future output growth improved in the surveyed month, despite the deterioration in overall operating conditions. With regards to prices, inflationary pressures remained generally muted in August, although currency weakness led to higher prices for imported raw materials.