The situation in the Russian manufacturing industry has collapsed, judging by its manufacturing PMI index, which fell to 31.3. Anything below a score of 50 indicates the a sector in that’s in contraction. The index had previously not posted a score below below 45 at any point during the last decade.
Economists at IHS Markit said economic conditions for producers have been aggravated by the slump in the value of the Russian ruble, which has led to higher costs for imported goods and materials. It comes at a time when demand is collapsing and customers have cancelled orders. Exports also have been particularly badly hit, as demand from key markets in Europe has crashed.
