Russia's manufacturing sector saw only a modest decline in March compared with previous months, indicating that the industry may enjoy some stability in the short term, international bank HSBC said on Wednesday.
HSBC's Purchasing Managers' Index (PMI), a composite indicator that tracks businesses' output, new orders and hiring, fell from 49.7 to 48.1 in March. Although this was the fourth straight monthly decline, HSBC said it was a relatively mild drop, cushioned by some instances of positive growth, fewer layoffs and a sharp drop in price inflation.
"With inflation falling back sharply over the month, there is hope of at least near-term stability," Paul Smith, senior economist at financial services company Markit, was quoted as saying in an HSBC press release.
Russian businesses have struggled as a whole from diminished access to capital and the rising cost of imports, a result of the ruble's fall of around 40 percent to the U.S. dollar since the beginning of 2014 on the back of low oil prices and Western sanctions over the Ukraine crisis.
The Russian economy is expected to contract by at least 3 percent this year. On Wednesday, the World Bank said that Russia's economy will shrink 3.8 percent this year, a sharp revision of their December forecast of a 0.7 percent decline.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
