Russia Manufacturing Growth Slowest In 9 Months

(RTTNews) - Russia's manufacturing activity expanded further in July, though at the weakest pace in nine months amid slower gains in output and new orders, the purchasing managers' survey data from S&P Global showed on Tuesday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, dropped to 52.1 in July from 52.6 in June. However, a reading above 50 indicates expansion in the sector.

The growth in new orders eased in July, as overall demand was weighed by a decrease in new export orders, the survey said.

Consequently, the output increased at the weakest rate in the current 12-month sequence of growth.

On the price front, input price inflation accelerated to a 15-month high in July, led by hikes in supplier prices. The depreciation of the ruble had led to higher costs for imported goods. The rate of output charge inflation was the steepest since April last year.

Greater optimism in the outlook and predictions of increased new orders underpinned an ongoing rise in employment in July. The rate of job creation has quickened since June.

Meanwhile, logistics challenges and supplier shortages led to the worst deterioration in vendor performance this year so far.

The outlook for output over the next year has improved due to predictions of improving demand conditions, a steady increase in new orders, and planned investments in product development.