A country’s Purchasing Managers' Index, or PMI, for particular sector is an economic indicator of the health of the sector in that country.

In July, in a pleasantly solid surprise, the manufacturing PMI for Russia was hale and hearty. It jumped 2.4 points from its June level (the lowest in 12 months) to hit 52.7. This was the best figure for the country in six months. In contrast, India’s PMI for July dropped 3.1 points to 47.9. This marked both its lowest level, and greatest fall, in eight and a half years.

The improvement in business conditions in Russia has been attributed, amongst other things, to solid growth in both new orders and output.

It will be interesting to see how the rest of the year turns out, especially in light of the round of U.S. sanctions.

IHS Markit Russia Purchasing Managers' Indices(PMI)

About the Author:

Tom Butcher is an Associate Director at VanEck. Formerly an independent writer, researcher, and consultant focusing, amongst other things, on strategic materials, in particular metals, Mr Butcher has 38 years of experience in finance. He has lectured and spoken at conferences around the world. Amongst other things, he writes the “Letter from North America” in the Minor Metals Trade Association's publication The Crucible, and was lead author of the chapter on gallium in the British Geological Survey's “Critical Metals Handbook”.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.