Russia’s PMI hits highest since invasion in August

Russia’s PMI hits highest since invasion in August
Russian businessmen are relatively sanguine about the sanctions as the effects of the economic slowdown have yet to hurt the population / bne IntelliNews
By bne IntelliNews September 1, 2022

The seasonally adjusted S&P Russia Manufacturing Purchasing Managers’ Index (PMI) posted 51.7 points in August 2022, above the no-change mark indicating expansion, up from 50.3 in July and showing the strongest improvement in the health of the manufacturing sector since January.

As followed by bne IntelliNews, the Russian economy seems to be doing much better than expected under Western sanctions for the military invasion of Ukraine and corporate profits remained resilient in 2Q22. PMI also remained in the black in the preceding months.

In August, Russian manufacturing firms recorded a modest improvement in operating conditions, with the upturn supported by stronger domestic demand, which drove output higher. The increase in new manufacturing sales was solid and the fastest since April 2019.

“Anecdotal evidence stated that greater new order inflows stemmed from the acquisition of new customers and stronger client demand in the domestic market,” the report said. In contrast, external sales remained in contraction territory and fell at their fastest pace since May.

Cost burdens continued to increase for Russian manufacturers in August. The rise in operating expenses eased notably from those seen earlier in the year, however, as falling costs for raw materials dampened inflationary pressures. 

At the same time, firms stated that higher selling prices were linked to efforts to pass on greater costs to clients. 

Notably, business confidence remained upbeat overall, even if softened in August. Positive sentiment was attributed to investment in marketing and hopes of stronger client demand. “That said, economic uncertainty weighed on expectations, which were weaker than the series average,” S&P report claimed.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Content

COP28: A week in, and fossil fuels and finance dominate

Earth nears catastrophic climate tipping points, say scientists

This winter’s gas crisis in Europe is already over before it began

Data

Czech industry increased by 1.9% y/y in October

Czech industrial production increased by 1.9% year on year and by 2.8% month on month in October. The October increase follows a 5% slump registered in September, which alarmed local analysts.

Turkey’s net reserves recover to minus $57bn

Since 2018, economy has carried risk of severe balance of payments crisis. For the removal of that risk, the central bank’s net in and off-balance sheet FX position should at least turn positive.

Hungarian retail sales fall for 11th straight month in October

Decline of 6.5% y/y is second worst in EU.

Retail sales in Romania slightly stronger in October

Retail sales rose by 0.9% m/m in October, recouping the losses incurred over the previous three months.

Drop in Czech retail sales slowed down to 1.4% in October

Czech retail sales decreased by 1.4% year on year and increased by 0.6% month on month in October, in the softest monthly drop in a year and a half. The drop in sales eased compared to the 4% y/y drop in September and the 2.8% y/y drop in August.

Czech industry increased by 1.9% y/y in October
10 minutes ago
Turkey’s net reserves recover to minus $57bn
15 hours ago
Hungarian retail sales fall for 11th straight month in October
23 hours ago
Retail sales in Romania slightly stronger in October
1 day ago
Drop in Czech retail sales slowed down to 1.4% in October
1 day ago

Follow Us On

Most Read

  1. LONG READ: The boomerang effect: sanctions hurt Europe more than Russia
    6 days ago
  2. Putin's approval rating up to 85% in November, Russians happy with the country's direction
    4 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  4. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    11 days ago
  5. Former Kazakh leader Nazarbayev confesses to polygamy with Miss Kazakhstan 1999
    2 days ago
  1. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  2. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    11 days ago
  3. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    4 months ago
  4. Armenia marks new era with French military purchases
    10 days ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago

Reports

SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n` LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 255243) AND (wn.sid= 3) AND (p.field_publication__tid IN (2465,2851,3184,3159,3266,3264,3270,3265,3267,3268,3269,3171,3168,3185,3170,1346,1345,3180,3175,3254,3249,1207,1208,3181,3231,3177,3186,3178,1003,3187,2975,3204,3198,3188,3202,3196,3250,3189,3160,3161,3312,3313,3173,3314,3315,3167,3259,3257,3263,3258,3260,3261,3262,3174,3316,3165,3192,3163,3282,3190,2811,3256,3317,3162,3318,3191,3297,3182,3179,3166,3319,3376,3320,3172,3255,3169,1008,3203,3197,3321,3252,3164,1307,3322,3183,3220,3176,3201,3323,1327,1020,1006,1009,1013,1014,1018,1005,1328,1010,1011,1002,1012,1311,1330,1017,1016,1019,1004,1001,1334,1335,1336,1015,1337,1338,1339,1340,1341,2496,2501,2517,2529,2506,2505,2524,2513,2526,2537,2489,2490,2520,2536,2488,2532,2500,2515,2503,2493,2527,2523,2510,2525,2498,2499,2528,2507,2487,2511,2521,2502,2491,2519,2497,2492,2514,2495,2509,2512,1629,3358)) LIMIT 1
Dismiss