USD/RUB continues downtrend after Russian manufacturing PMI signals strongest growth since July
Source: FxWire Pro - Commentary / 28 Dec 2017 03:50:11 America/New_York
The Russian Ruble continued to witness solid gains vs the US dollar after the Russian manufacturing sector signaled a solid improvement in operating conditions. Further, a stronger overall upturn was supported by accelerated growth in output and new orders.
The seasonally adjusted IHS Markit Russia Manufacturing Purchasing Managers’ Index (PMI) posted 52.0 in December, up from 51.5 in November. The latest index reading signaled solid growth across the Russian manufacturing sector and reached a five-month high. The latest PMI was in line with the average for 2017 as a whole.
Greater demand from new and existing clients supported a solid increase in new orders received by Russian goods producers. Furthermore, the rate of growth quickened and was the fastest since July. Export sales, however, contracted for the first time since August, albeit only marginally.
However, inflationary pressures remained muted in the context of the series history, with rates of both input price and charge inflation softening despite supplier constraints delaying delivery times further. The rate of inflation eased to a four-month low despite vendor performance deteriorating to the greatest extent since July 2016. Average prices charged also increased at a muted pace, with the rate of inflation softening to a five-month low.
"In line with recent cuts in interest rates by the Russian central bank, inflationary pressures remained muted in the context of the series history. Moreover, the pace of both input price and output charge inflation softened despite greater supplier delays," said Sian Jones, Economist at IHS Markit.
As of 08:30GMT, USD/RUB traded 0.32 percent lower at 57.55. Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.