The IHS Markit Russia Manufacturing PMI increased to 47.5 in December 2019 from a 10-1/2-year low of 45.6 in the previous month. The latest reading pointed to the eighth straight month of contraction in the sector, but the smallest since August. Production and client demand fell at a softer pace while firms reduced further their workforce numbers and backlogs of work dropped sharply. At the same time, output prices rose only slightly and at the joint-slowest pace since April 2017, as firms struggled to pass on higher cost burdens amid challenging demand conditions. Meantime, input price inflation reportedly stemmed from higher raw material prices. Looking ahead, business sentiment was the second-lowest for over two years. Manufacturing PMI in Russia averaged 50.36 points from 2011 until 2019, reaching an all time high of 54.70 points in January of 2017 and a record low of 45.60 points in November of 2019. source: Markit Economics
Manufacturing PMI in Russia is expected to be 46.90 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Russia to stand at 53.20 in 12 months time. In the long-term, the Russia Manufacturing PMI is projected to trend around 54.00 points in 2020, according to our econometric models.