Russia’s Manufacturing PMI declines to 48 in Apr from 48.3 in Mar

MOSCOW, Apr 29 (PRIME) -- Russia’s Manufacturing purchasing managers’ index (PMI) fell to 48 in April from 48.3 in March, remaining under the 50 notch distinguishing between an overall growth and contraction, agency Markit said in a research note released on Friday.

The industrial production fell at the sharpest pace since May 2009 with all sectors reporting declines.

The finished goods’ stock decreased for the 24th month in a row.

A sharp fall of foreign demand together with a slightly reducing domestic one contributed to a decrease in new orders.

As a result, the volume of outstanding tasks fell and companies fired more employees than hired for the 34th consecutive month.

The raw base and inventory acquisitions went down, while costs rose.

“After the International Monetary Fund (IMF) recently downgraded their 2016 forecast for Russian gross domestic product (GDP) growth to –1.8% from –1.0%, latest PMI data for April brings further disappointing news to policymakers. The headline figure reinforced the predictions made by the IMF as it slipped to an eight-month low, pointing to more challenging business conditions for Russian manufacturers,” Samuel Agass, economist at Markit, said.

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