Russia Manufacturing Sector PMI Stagnates … RTT
Russia’s Manufacturing Sector PMI Stagnates In September
The Russian manufacturing sector signaled no change in operating conditions in September after contracting in the previous four months, survey data from IHS Markit showed
The Purchasing Managers’ Index, or PMI, rose to 50.0 in September from 48.9 in August.
Any reading below 50 suggests contraction, while a score above 50 indicates expansion in the sector.
Both output and new orders returned to growth territory in September. Notably, new business from abroad rose at the fastest pace since April amid greater foreign client demand.
Pressure on capacity was also indicated through a weaker fall in backlogs and a marginal rise in employment.
On the price front, input price inflation remained sharp in September due to an unfavorable exchange rate which was pushing up imported purchase prices.
Despite fragile demand conditions, firms raised their selling prices at the fastest rate in five months.
“Such inflationary and exchange rate pressures were highlighted by the Central Bank of Russia as key factors behind the unexpected interest rate rise in September,” Sian Jones, Economist at IHS Markit, said.
by RTTNews Staff Writer