Russia’s manufacturing PMI in February
According to a report by Markit Economics, the final Russia manufacturing PMI (purchasing managers’ index) fell drastically in February as compared to January 2018. It was at 50.2 in February as compared to 52.1 in January 2018. The February figure didn’t meet the preliminary market estimate of 52.5. This reading was the weakest reading since July 2016.
Russia’s manufacturing PMI in February was affected by the following factors:
- Production volume and output rose at a weaker rate in February 2018.
- Both new business orders and factory output saw the smallest rises in the last eight months.
- Export orders in the manufacturing sector rose significantly in the same month.
- Employment in the manufacturing sector also contracted in February 2018.
The instability in Russia’s political environment ahead of the 2018 presidential election outcome affected consumers’ sentiment. However, the overseas demand remained stronger and supported production output in February 2018.
Performance of ETFs in February 2018
The VanEck Vectors Russia ETF (RSX), which tracks the performance of Russia, fell 1.6% in February 2018. The Direxion Daily Russia Bull 3X ETF (RUSL) fell 6.4% during the month. The overall global selling pressure caused a huge fall in the major Russia-tracking ETFs.
In the next part of this series, we’ll analyze the performance of Russia’s services PMI in February 2018.