Latest PMI report revealed that economic downturn is not done with. PMI index, which is a gauge for manufacturing slipped to 48.3 in July from 48.7 in June. A number below 50 indicates contraction and vice versa. Russian PMI has remained below 50 mark for eight consecutive month.

Key highlights -

Output dropped for third consecutive month, indicating slowing demand.

New orders and business continued to decline both in domestic front and from abroad.

Due to weaker Rouble, input costs have surged, however companies as of now are not passing onto the customers.

Jobs continued to get lost in the sector.

To add further to the woe, oil prices have slumped significantly over last few weeks.

Price of Brent benchmark has fallen towards $50/barrel. Currently trading at $50.6/barrel. Oil is the major export revenue generator for Russia, which along with lower price, facing tougher competition from other oil exporters.

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