Markit: Russia’s Manufacturing PMI falls to 31.3 in April

MOSCOW, Apr 30 (PRIME) -- Russia’s Manufacturing Purchasing Managers’ Index (PMI) decreased to 31.3 in April from 47.5 in March, remaining below the 50 no-change mark, which means overall deterioration, researcher IHS Markit said on Thursday.

“The headline seasonally adjusted IHS Markit Russia Manufacturing PMI posted 31.3 in April, down notably from 47.5 in March, and signaled the greater deterioration in operating conditions across the Russian manufacturing sector since data collection for the survey began in September 1997,” the report said.

Latest PMI survey data signaled a substantial contraction in production across the Russia manufacturing sector, as emergency public health measures to halt the spread of the coronavirus disease 2019 led to factory closures and a marked reduction in client demand, the researcher said.

Although firms remained optimistic of an increase in output over the coming year, expectations dropped to a series low (since April 2012) and workforce numbers were reduced steeply.

Inflationary pressures intensified as supplier shortages and an unfavorable exchange rates pushed the price of imported inputs up.

“Already-difficult demand conditions across the Russia manufacturing sector were further exacerbated by factory closures and lockdowns following the escalation of the outbreak of COVID-19. Output and new orders contracted at unprecedented rates as domestic and foreign client demand slumped,” Sian Jones, economist at IHS Markit, commented on the survey.

“We expect industrial production in Russia to decline 3.8% in 2020, as the impact of the COVID-19 outbreak takes hold. Manufacturers remained optimistic of a rise in output in the coming year, but confidence was knocked such that it dropped to a series low.”

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