Russia’s manufacturing sector contracts sharply in April, Markit PMI drops to eight-month low of 48

In April, Russia’s manufacturers have recorded an additional decline in operating conditions. Along with production, incoming new orders also dropped. The seasonally adjusted Markit Russia PMI dropped in April to 48, an eight-month low, from March’s figure of 48.3. The fall reflects worsening downturn in Russia’s goods producing sector, noted Markit.

A sharp contraction in manufacturing sector output of Russia was mainly responsible for the drop in the headline number, according to Markit. All the monitored sub-sectors posted a decline. Manufacturers also recorded a drop in inward bound new work. External demand fell noticeably, along with a drop in domestic demand, at a modest pace.

Russia has been recording falling levels of outstanding business, and in response to that, goods producers are laying off employee. This was the 34th consecutive month of shedding jobs. According to the recent survey data, Russia’s manufacturing sector recorded a further drop in buying activity in April.

Furthermore, the three sub-sectors monitored also reported reductions in buying input. Meanwhile, Russia continued to record declines in pre-production inventories; however, the pace of decline alleviated to the weakest level in three months.