Russia Manufacturing Growth Slowest In 6 Months

(RTTNews) - Russia's manufacturing sector expanded at the weakest pace in six months as growth in output and new orders eased, survey results from S&P Global showed on Thursday.

The manufacturing purchasing managers' index, or PMI, dropped to 53.6 in July from 54.9 in June. Nonetheless, a reading above 50 indicates expansion in the sector.

New orders continued to increase in July amid on-going improvements in demand conditions and new client wins. Nevertheless, the pace of increase slowed to the weakest in a year. Meanwhile, new export orders showed a renewed decline in July due to weaker demand from key export markets.

In line with the slower rise in new orders, the expansion in production has softened to the weakest since January.

On the price front, input price inflation accelerated to the highest level since October 2023, led by higher costs for raw materials, transportation and supplier charges, and unfavorable exchange rate movements. As a result, firms raised their selling prices.

In turn, firms moderated expansions in employment and input buying in July. However, manufacturers remained optimistic in their outlook for output over the next twelve months on the back of investment in new machinery, product development, and hopes of stronger demand conditions.