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Russia’s Manufacturing PMI Gradually Improving: What That Means

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Russia’s manufacturing PMI in April

According to a report by Markit Economics, the final Russia manufacturing PMI has been improving gradually since February. It was 51.3 in April compared to 50.6 in March. The April figure met the preliminary market estimate of 51.3.

Russia’s manufacturing PMI in April was mainly due to the following factors:

  • Production volume and output improved at a higher rate in the past three months.
  • Both new business orders and factory output has risen at a higher rate so far this year.
  • Export orders in the manufacturing sector rose significantly in April.
  • Employment in the manufacturing sector improved at a higher rate in April.

Rising uncertainty about global trade due to the imposition of various import duties by the United States has affected investment sentiment in Russia in the past few months. However, sentiment improved in April since the economic condition improved. Higher consumer spending and buying activity also supported the rising manufacturing PMI.

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ETFs in April

The VanEck Vectors Russia ETF (RSX), which tracks the performance of Russia, fell 7.5% in April. The Direxion Daily Russia Bull 3X ETF (RUSL) fell 26.4% that month.

In the next part of this series, we’ll analyze the performance of Russia’s services PMI in April.

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