Russia: Manufacturing PMI rises in June
The S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) rose to 54.9 in June from 54.4 in May. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in manufacturing-sector operating conditions compared to the previous month.
The increase was driven by a sharper rise in new orders, aided by the first expansion in new business from abroad in three months. Moreover, production rose at one of the fastest paces in over seven years and firms expanded their workforce at the speediest rate on record. This job creation was partly to alleviate pressure on capacity, as evidenced by the first decline in backlogs of work in four months.
Regarding prices, cost pressures intensified, with input prices rising at the fastest pace since November 2023 due to logistics issues and higher transportation and supplier prices. This led firms to raise their selling prices at the sharpest rate year to date. Lastly, Russian manufacturers’ confidence reached a three-month high, buoyed by planned investments in new product development and new client acquisitions.