MOSCOW, Aug 1 (PRIME) -- Russia’s Manufacturing PMI (Purchasing Managers’ Index) fell to 48.1 points in July from 49.5 points in June, researcher Markit said in a statement on Wednesday.
“The seasonally adjusted IHS Markit Russia Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure snapshot of the performance of the manufacturing economy –registered 48.1 in July, down from 49.5 in June. The latest PMI reading indicated a weak start to the second half of the year and the strongest deterioration in operating conditions since April 2016,” the research said.
The PMI of above 50 points represents growth of economic activity, while the index of below 50 points represents a decline.
July survey data indicated a third successive month of contraction in the Russian manufacturing sector, Markit said. The latest fall was largely driven by a decline in output and a second successive monthly decrease in new orders.
Output levels at Russian manufacturers contracted for the first time since April 2016 in July, albeit only marginally. The decline in production was linked to weaker client demand and a fall in new orders.
“July survey data indicated a further deterioration in Russian manufacturing operating conditions. Exacerbating the fall was the first decline in output since April 2016, and a second successive decrease in new business. There were also signs of weaker foreign demand as new export orders contracted,” Sian Jones, economist at IHS Markit, commented on the survey.
“In line with an overall downturn in the sector, the degree of optimism among manufacturers dipped to a seven-month low. Although some remained confident of a rise in output and new orders, others expressed pessimism due to weak demand.”
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