Why Russia’s Manufacturing PMI Fell in August 2017
Russia’s manufacturing PMI in August
In August 2017, Russia’s (RSX) manufacturing activity saw a decline in overall business conditions as compared to the previous month. Russia’s manufacturing PMI stood at 51.6 in August 2017 as compared to 52.7 in July. The PMI figure didn’t meet the market expectation of 52.
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Russia’s weaker manufacturing PMI in August was mainly due to the following factors:
- Production output and volume rose at a weaker pace in August 2017 as compared to July.
- New orders and export orders fell in that month, which shows that client demand and the business condition slipped.
- The employment in the manufacturing sector also fell.
The business sentiment fell to the lowest level since January 2016. Export orders also contracted significantly in August. The US (SPY) (QQQ) imposed various economic sanctions on Russia in the last month. These sanctions are likely to impact major energy companies in Russia.
These economic sanctions hampered Russia’s economic activity in August 2017 and reduced the client demand and purchasing activity in that month.
In the next part of this series, we’ll analyze the indicators that investors should watch this week.