Russia’s Manufacturing PMI Improved Marginally in September

According to a report by Markit Economics, the final Russia Manufacturing PMI (Purchasing Managers’ Index) rose marginally in September 2017. It was 51.9 in September compared to 51.6 in August. The September figure met the preliminary market estimate.

The stronger performance in Russia’s manufacturing PMI in September was mainly due to the following:

• Production volume and output showed solid improvement.
• New business orders expanded.
• Export orders increased after seven months of decline.
• Job growth in the manufacturing sector improved.

Consumer buying activity and business sentiment improved in September. Business sentiment rose to its highest level since May 2015. The Russian economy largely depends on crude oil (USO) (UCO) and energy product exports. Stabilization in crude oil and various commodity (DBC) prices is an important driver for the Russian economy. Rising manufacturing activity also signifies that economic activity is strengthening.

The VanEck Vectors Russia ETF (RSX), which tracks the performance of Russia, rose 4.5% in September 2017. The Direxion Daily Russia Bull 3X ETF (RUSL) rose 13.6% that same month.

In the next part of this series, we’ll look at the services PMI for Russia in September 2017.