MOSCOW, Dec 2 (PRIME) -- Russia’s Manufacturing Purchasing Managers’ Index (PMI) decreased to 45.6 in November from 47.2 in November, falling to the lowest point since May 2009 and remaining below the 50 no-change mark, which means overall deterioration, researcher IHS Markit said on Monday.
“The overall contraction was driven by weaker demand conditions, with production and new orders falling at steeper rates. In turn, goods producers reduced their workforce numbers further and output expectations slumped to the weakest for two years,” the agency said.
Inflationary pressure was reduced to the lowest level in the history, while weak demand and provision of discounts did not lead to a noticeable increase in production prices.
“Russian manufacturing firms continued to highlight challenging domestic and foreign demand conditions, with the sector recording its worst performance since May 2009 in November. The deterioration was driven by a slump in new business and subsequent drop in production. As a result, firms were less certain of a rise in output over the coming year, with hesitancy also reflected in a sharper fall in employment,” Economist Sian Jones said as quoted by Markit.
“Our current industrial production forecast points towards a slowdown in output in the final quarter of 2019 and during the opening months of 2020 as muted domestic consumer spending is expected to weigh on the expansion,” Jones said.
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