Russia Dec. Manufacturing PMI Drops Further

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Russia's manufacturing activity decreased further in December , a report from the Markit Economics showed on Monday.

The VTB Capital manufacturing Purchasing Managers' Index or PMI dropped to 48.8 in December from 49.1 in November, showing an overall decline in manufacturing business conditions. This was the lowest value since July 2009. A reading above 50 indicates expansion in the sector and below 50 suggests contraction.

Manufacturing production was maintained its growth for the fifth month in a row in December, while new export orders dropped for the fifteenth straight month.

Dmitri Fedotkin, economist at VTB Capital, said, "The decline in new orders led to another round of inventories depletion that also contributed negatively to PMI in December."

"On a more positive note, the employment index continued to improve following October's sizable drop. This suggests that the recent pick-up in unemployment might fade soon. Input and output price indices rose, but remained at their historic lows, suggesting the inflationary pressures remained muted in the economy."economist added.

Russia's manufacturing activity decreased further in December , a report from the Markit Economics showed on Monday. (Market News Provided by RTTNews)