Page 35 - RusRPTOct21

4.3 Industrial sectors and trade 4.3.1 Producers PMI
Russia’s seasonally adjusted IHS Markit Russia Servicesusiness Activity Index went into the red in August fallingelow the 50 no-change mark to 49.3, down heavily from 53.5 in July as the low base effects wear off, Markit reported on September 3.
Russia’s economy is slowing on paper,but the statistics are confusing following the big swings during the last year and half due to the pandemic. However, the forward looking PMI that is based on panel interviews with business leaders show clearly that the economic bounce back effect is coming to an end and growth is cooling as the autumn arrives.
Russia’s economy boomed as the coronacrisis started come to an end in the last quarter of 2020 – a process that is not over. What is happening now is a mild correction from a bounceback-overshoot as a new economic balance is established and growth settlesack into its long-term projection groove.
The seasonally manufacturing PMI index also posted a fall in August to 46.5, down from 47.5 in July, the third successive monthly deterioration in operating conditions across the Russian manufacturing sector.
35 RUSSIA Country Report October 2021 www.intellinews.com