Russian econ min says situation with Manufacturing PMI Sep alarming

SOCHI, Oct 3 (PRIME) -- Russia’s Manufacturing purchasing managers’ index (PMI) in September is worrying but longer dynamics must be taken into consideration before making conclusions, Economic Development Minister Maxim Oreshkin said on the sidelines of the Valdai Discussion Club on Thursday.

Russia’s Manufacturing PMI fell to 46.3 in September, a minimum since May 2009, from 49.1 in August, researcher Markit said on Monday.

Oreshkin said, “Firstly, this figure causes worry, and we must not ignore it, this is the first thesis. The second is that this figure can be volatile, so we must look at longer periods.”

He said that weak demand, both domestic and foreign, and low dynamics of wholesale prices are the most alarming components of the index.

Russia will finish 2019 with inflation below the central bank’s target of 4%, Oreshkin said. “We invariably go significantly beyond 4% already this year, and lower than 3% in the first quarter of 2020,” he said.

He said that the ministry will revise its forecasts at the end of December, covering the period of the end of 2019 and the beginning of 2020.

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