Russia’s fast deteriorating economy
The latest HSBC Purchasing Managers’ Index™ (PMI) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – highlights the ongoing downturn in business conditions in the Russian goods-producing sector. Moreover, the PMI declined from 48.8 to 48.0, the lowest reading since June 2009. New orders continued to decline marginally in January, amid reports of weak underlying demand. The rate of contraction accelerated slightly to the fastest since July 2011, and international demand continued to weigh on total inflows of new work as new export business fell for the fifth month running. The current sequence of declining new export orders is the joint-longest in over four years.
Alexander Morozov, Economist at HSBC says: ”Consumer goods producers reported falling output levels for the first time in many months. Apparently, a sharp moderation of demand growth caught them by surprise, forcing them to increase their inventories for now. Intermediate goods producers got some support from growth in export demand that allowed them to increase output amid declining domestic demand.”