HSBC: Russia’s manufacturing PMI hits record low of 48 in Jan

MOSCOW, Feb 3 (PRIME) -- Russia’s Manufacturing Purchasing Managers’ Index (PMI) plunged to 48 points in January, a record low level since June 2009, from 48.8 points in December 2013, HSBC said in a report Monday.

The index has been below the 50 point threshold for the sixth time øin the past seven months proving a prolonged worsening of the business environment in the manufacturing industry.

Production volumes in the manufacturing sphere in January fell for the seventh time over the past seven months, while rates of falling have been at their maximum notch since May 2009.

“Manufacturers started the year on a minor note, the January HSBC Russia Manufacturing PMI survey found. Indeed, all key economic activity indicators point to a broad-based contraction. Notably, manufacturing output decreased for the first time since July last year. In conjunction with the reported decline in new orders, ongoing cuts in staffing, faster suppliers’ delivery times and a stronger rise in output prices, the overall picture in manufacturing looks pretty gloomy,” Alexander Morozov, chief economist (Russia and CIS) at HSBC, said in the report.

“Generalizing the January PMI results, we see the Russian economy losing its key driver–private consumption growth. Investment demand has not recovered yet to become a new growth driver, while export demand for intermediate goods is not strong enough to offset weakness in the two other sectors.”

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