Moscow, Russian Federation (4E) – Private sector output in Russia fell for a second consecutive month in April and at the fastest pace in almost five years, according to results of a survey by HSBC and Markit Economics released Wednesday.
The HSBC Russia composite output index dropped slightly to 47.6 in April from 47.8 in the previous month. The level in April is the lowest since May 2009. A reading below 50 means contraction in the sector.
The Russian service sector’s purchasing managers’ index (PMI) continued to fall in April and the corresponding index dropped to 46.8 from 47.7 in March. It was also the lowest level since May 2009.
Recent indicators showed that the Russian manufacturing sector fell for the fourth straight month in April.
Total new orders for both services and manufacturing dropped at the quickest pace in almost five years. This caused the decline in private sector employment for the tenth successive month and at a near-record rate.
Input price inflation fell from a three-year high in March. The weakening ruble exchange rate continues to push prices up. Meanwhile, output price inflation rose to its fastest pace since July 2011.
Wednesday’s report also showed service providers have a more upbeat outlook for activity in the next 12 months.