Russia PMI April 2017

Russia

Russia: Manufacturing sector weakens in April

May 4, 2017

Business activity in Russia’s manufacturing sector slowed down in April. The Manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit inched down from 52.4 in March to 50.8 in April. The fact that the PMI declined but remained above the 50-threshold that separates expansion from contraction in the sector indicates that manufacturing activity continued to expand, although at a slightly slower pace.

Both output growth and new orders kicked into a lower gear in April, IHS Markit stated. In addition, jobs were shed at a quicker pace. The bleaker situation was corroborated by a deterioration in business sentiment and a gloomier outlook on output. In terms of price developments, respondents pointed out that input prices climbed up in April, though at a modest pace, mainly due to limited supply and higher commodity prices. Russian goods producers stated that output prices increased in April for the first time in three months.

Regarding the services sector, the Services PMI dropped to 56.1 in April, from 56.6 in March. According to IHS Markit, outstanding work in the sector fell from the first time since June although employment growth remained strong. Both output and new orders expanded amid healthy demand.

FocusEconomics Consensus Forecast panelists project Russia’s gross fixed investment to expand 1.7% in 2017, which is unchanged from last month’s forecast. Panelists expect the economy to expand 2.4% in 2018.


Author: Angela Bouzanis, Senior Economist

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Russia PMI Manufacturing April 2017

Note: IHS Markit Manufacturing Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: IHS Markit.


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