Russia: Manufacturing PMI hits six month-low in July
The S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) fell to 53.6 in July from 54.9 in June. As a result, the index remained above the 50.0 no-change threshold but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
July’s reading chiefly reflected a notable decline in new export orders—which firms attributed to weaker demand from key export markets—driving the slowest rise in new orders in the year to date and, as a result, weaker output growth. That said, manufacturers noted improved demand conditions and new client wins domestically. Meanwhile, job creation and input buying lost momentum.
On the price front, cost burdens intensified in July, with firms noting higher raw material, transportation and supplier costs, alongside unfavorable exchange rate movements. However, the rate of charge inflation softened. Lastly, business sentiment was largely stable at June’s three-month high, buoyed by investment in new machinery, product development and hopes for stronger demand conditions.