Russia’s services PMI in October
According to a report by Markit Economics, the final Russia Services PMI (purchasing managers’ index) fell in October 2017 as compared to September. It stood at 53.9 in October 2017 as compared to 55.2 in September 2017. The figure didn’t beat the market expectation of 55.0.
The weaker improvement in Russia’s services PMI in October 2017 was mainly due to the following factors:
- Production output weakened during the month.
- New orders improved at a slower rate in the same month.
- Employment in the service sector also improved slowly in October 2017.
The slower consumer demand and business confidence impacted the overall performance of the service industry in October. However, the export orders strengthened due to the improvement in international (ACWI) (VTI) demand.
Performance of major ETFs
The iShares MSCI Russia Capped (ERUS), which tracks the performance of Russia (RSX), fell 1.6% in October 2017. However, the VanEck Vectors Russia Small-Cap ETF (RSXJ) rose 1.7% during the same month.
In the next part of this series, we’ll analyze the performance of China’s manufacturing PMI in October 2017.