Markit: Russia’s Manufacturing PMI down to 50.1 in February

MOSCOW, Mar 1 (PRIME) -- Russia’s Manufacturing purchasing managers' index (PMI) fell to 50.1 in February from 50.9 in January, still hovering above the 50 no-change mark, researcher IHS Markit said in a research note on Friday.

“The seasonally adjusted IHS Markit Russia Manufacturing Purchasing Managers’ Index (PMI)…registered 50.1 in February, down slightly from 50.9 in January and just above the 50.0 no-change mark. The latest data signaled broadly unchanged operating conditions across the Russian manufacturing sector. Moreover, the headline PMI was at its lowest since last September,” Markit said.

The growth of output and new orders in February slowed down to the slowest pace since September 2018. The impact of a recent increase in VAT was still raising costs of the companies.

"Weaker global demand conditions and the impact of the recent hike in VAT dented growth across the Russian manufacturing sector. Although the upturn in output quickened, the rise was only fractional and operating conditions were broadly unchanged in February. New export orders took a further tumble, and declined at the fastest pace since April 2017 as weaker demand from foreign clients took hold,” Markit said quoting Economist Sian Jones.

The VAT raise resulted in inflationary pressure remaining strong. “Nevertheless, manufacturers were expectant of an upturn in output over the coming 12 months. Business confidence was the second-highest since May 2013, despite softer demand conditions,” Jones said.

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