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60 I New Europe in Numbers bne August 2023
Russia PMI
Russian Services PMI jumps to record high in June 2023
Russian service sector performance improved in June, as business activity expanded at the fastest rate since March, according to the latest S&P Global report.
As followed by bne IntelliNews, despite the fallout from Russia's full- scale military invasion of Ukraine, the manufacturing sector ended 2022 with a historically strong expansion in output. Manufacturing PMI since January 2023 continued to trend in positive territory.
While throughout 2022 a wide gap persisted between the strong manufacturing and poor services PMI performance, in the beginning of 2023 services started to catch up with manufacturing, posting only a marginal contraction.
Retail sales turn more volatile in Romania but hit a new record
The retail sales volume in Romania (chart) increased by 3.2% y/y in May when the seasonally-adjusted index reached a new record after the weaker figures in April suggested private consumption fatigue.
Despite the high inflation rates, real wages in Romania declined somewhat in the second part of last year but they have recovered quickly meanwhile reaching record levels in March-April this year (latest available data), while employment remained close to the highest level ever as well.
Borsa Istanbul attracts $974mn portfolio inflows in three weeks
Turkey’s stock exchange Borsa Istanbul has attracted a total of $974mn worth of portfolio inflows in a three-week period between June 2 to June 23, weekly data from the central bank showed on July 5.
It was probably “tactical” investors who were now betting on Turkish stocks, rather than longer-term strategic investors, given significant risks such as a further fall in the lira, Emre Akcakmak of East Capital told the Financial Times.
“It is hard to say long-term strategic investors are pouring into the stock market,” he added.
Ukraine sees record volume of international reserves, nearly $39bn
Ukraine has recorded its highest volume of international reserves, reaching nearly $39bn, Andriy Pishnyi, the head of the National Bank of Ukraine (NBU), wrote on July 6.
In June, Ukraine received $1.6bn from the EU, $1.2bn from the USA, $69.1mn from the World Bank and $15mn from Finland. Additionally, the International Monetary Fund (IMF) distributed another tranche of the extended financing program – $886mn.
“This support is not charity; it is a well-calculated decision that takes into account Ukraine's ability to ensure the efficiency of the financial sector, fulfil its commitments, and continue to implement the necessary reforms,” Pishnyi wrote on Facebook.
Source: S&P Global
Romania: Retail Sales Index [2015=100; seasonally, workday adjusted]
Source: bne IntelliNews
Portfolio flows to Turkish lira papers
Source: bne IntelliNews
Ukraine gross intl reserves $mn
40,000 35,000 30,000 25,000 20,000 15,000
Source: bne IntelliNews
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