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.