Russian Manufacturing PMI Signals Marginal Upturn In June

(RTTNews) - Russia's manufacturing sector expanded at a modest pace in June, as new orders returned to growth territory, survey data from S&P Global showed on Friday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, rose marginally to 50.9 in June from 50.8 in May. A reading above 50 indicates expansion in the sector.

New orders grew for the first time in five months in June, linked to greater domestic demand and the agreement of new projects. But, the rate of growth was marginal overall.

Meanwhile, new export orders continued to fall in June caused by the impact of sanctions and the suspension of contracts with customers in Europe.

Output declined further and at a solid pace in June as goods producers faced challenges with collecting raw materials due to shortages and higher imported input costs.

Input price inflation softened from May's survey record high to reach its lowest level since February 2020.

The slowing trend in cost inflation was largely attributed to lower supplier prices. Output charges fell for the first time since March 2017, but only marginal.

In line with rising new orders, goods producers raised their staffing level in June, ending a four-month sequence of decline.

Looking ahead, output expectations of manufacturers remained optimistic in June. The degree of confidence strengthened to a 4-month high amid hopes of greater client demand and a stabilization in economic conditions.