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Russia’s manufacturing PMI at its three-month low

Depreciation of the Russian ruble against the US dollar led to a sharp and accelerated increase in average input prices by raising the cost of imported goods

LONDON, September 1. /TASS/. The seasonally adjusted Markit Russia Purchasing Managers’ Index (PMI) - a composite indicator designed to measure the performance of the manufacturing economy - fell to 47.9 points in August 2015 from 48.3 points in July, Markit analytical agency said Tuesday.

The index is at three-month low. Production volumes in August virtually remained at the level of July, and a decline in the number of new orders and employment was the highest since May.

"Notably, a depreciation of the Russian ruble against the US dollar led to a sharp and accelerated increase in average input prices by raising the cost of imported goods. A number of manufacturers sought to protect their own margins by increasing their own prices charged to clients," the report said.

"Amid reports of a challenging macroeconomic environment, the Russian manufacturing sector continued to splutter with orders and employment both falling at their sharpest rates for three months. "With declining global oil prices placing downward pressure on the ruble, manufacturers suffered from sharp increases in their average input prices. This may well remain a theme going forward given the volatile nature of global markets at present, and as such a challenging end to 2015 seems to lie in wait for the manufacturing sector," Senior Economist at Markit Paul Smith said commenting on the Russian manufacturing PMI.

The PMI value above 50 points is indicative of the business activity growth and the value below the said level flags its slowdown.