Business activity index in Russia for June 2022

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) rose to 50.9 in June from 50.8 in May. The June result was the best result since January. Thus, the index moved further above the no-change threshold of 50.0, indicating a faster improvement in business conditions compared to the previous month.

June figures point to a slight improvement in Russian production. However, production continued to decline at the end of the second quarter, mainly due to reduced exports and continued shortages of raw materials. More positively, employment returned to growth in June, while sentiment was bolstered by an increase in new orders. Finally, a softer increase in production costs led to the first drop in selling prices for Russian manufacturers in more than four years, indicating that inflationary pressure peaked in the middle of the second quarter.

FocusEconomics experts predict a 20.0% fall in fixed capital investment in 2022, which is 0.6 percentage points higher than last month’s forecast. In 2023, experts predict a decline in investment in fixed assets by 2.6%.

FocusEconomics experts predict a 20.0% fall in fixed capital investment in 2022, which is 0.6 percentage points higher than last month’s forecast. In 2023, experts predict a decline in investment in fixed assets by 2.6%.