Български Русский English
Russian manufacturing optimism falters in December
Thursday, 29 December 2011 10:55
Russia´s manufacturing down in December

Russia´s manufacturing down in December

Russia’s manufacturing slowed down in December, with the overall 2011 performance remaining flat.

A barometer of Russian manufacturing industry – the HSBC Purchasing Manager Index (PMI) – stood at 51.6 points in December, down from 52.6 a month ago. The December reading was also below its historic average of 52.1, while the average figure for the entire year remained at the 2010 level of 51.8 points

Demand from abroad – one of the main traditional drivers of Russia’s manufacturing – weakened in December, as new orders received from export markets decreased for the first time since September.

Output was also growing at a slower pace in December, said Alexander Morozov, Chief Economist (Russia and CIS) at HSBC. It “was around half as strong as the pace before the 2008 crisis,” he added.

Strong performance in previous periods, with a surprising spike in economic activity in November and a December 2010 PMI reading of 53.5 – the highest since March 2008 – also made December figures look poor, explained Morozov.

“The PMI report gives rise to concern that year-on-year manufacturing and industrial growth may have slowed down significantly in December due to the strong negative base effect.”

Slower growth of export orders, with output outpacing new orders, all make a scenario of further slowdown of Russia’s manufacturing increasingly possible, Morozov warned.

However, “a repetition of the 2008 crisis scenario looks unlikely from the current levels and trends of PMI indicators,” said HSBC Chief Economist.

A PMI reading above 50 points to growth, with below 50 pointing to economic contraction

What will happen to the Russian ruble?

article thumbnail

The decline of the Russian national currency in August has become an unpleasant surprise to both the leadership of the country and common people. Some experts believe that the ruble may soon hit the level of 70 rubles per dollar. August is traditionally a hard month for the financial market in gene [ ... ]

An American conductor at the Mariinsky: Nice to have Gergiev by your side

article thumbnail

Christian Knapp is an American conductor who has been working at the Mariinsky Theater in St. Petersburg since 2011. Chicago-born, he grew up listening to the Chicago Symphony Orchestra during its golden era under chief conductor Sir Georg Solti. Originally a pianist who was trained at the New Engla [ ... ]

Syrian War Rages on in Spite of an Extended Ceasefire, US-Russian Efforts

article thumbnail

News03:34 12.05.2016(updated 10:03 12.05.2016) Get short URLOn Monday, Russia and the United States announced that they were “re-doubling” peace efforts in Syria, with negotiations ongoing to revive the struggling ceasefire agreement implemented in February.The joint effort to bring about  [ ... ]