Markit says Russia's Manufacturing PMI falls to 51.1 in March

MOSCOW, Apr 1 (PRIME) -- Russia's Manufacturing Purchasing Managers' Index (PMI) fell to 51.1 in March from 51.5 in February, staying above the 50 no-change mark, which signals an overall expansion of activity in the sector, researcher IHS Markit said in a statement on Thursday.

"March PMI data signaled a  loss  of  growth  momentum  across the Russian manufacturing sector. Price hikes and supply shortages constrained  production,  whilst  softer client demand weighed on the increase in new orders," Economist Sian Jones said as quoted by Markit.

New order growth was marginal but the expansion continued for a third month in a row. New export orders continued to contract, although slower than in February.

"Strain   on   global   supply   chains   pushed   input   costs   up once again  and  at  a  marked  pace.  Although  firms increased  their  selling  prices  at  a  slower  rate,  it  was  nonetheless among the fastest for six years in an effort to  partially  pass  on  soaring  costs,” Jones said.

“Further  historically  elevated  rates  of  inflation  in  March  add  to  concern regarding   building   price   pressures   through   2021   to   date  by  the  Central  Bank  of  Russia.  We  are  currently  forecasting  three  more  interest  rates  hikes  before  the  end of the year."

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