Russian factory activity growth slowest in over a year in Aug, PMI shows
Sept 2 (Reuters) -Activity in Russia's manufacturing sector grew at its slowest pace in over a year in August, a business survey showed on Monday, as expansion in output, new orders and employment all eased.
The S&P Global Purchasing Managers' Index (PMI) for Russian manufacturing fell to 52.1 in August from 53.6 in July, staying above the 50 level that marks growth in activity, but dropping to its lowest reading in 13 months.
"Although output, new orders, and employment continued to grow, the rates of expansion slowed in each case," S&P Global said in a statement.
Russia has been spending heavily on manufacturing military equipment and weapons since invading Ukraine in February 2022, buoying a sector that otherwise may have suffered as some countries shunned Moscow.
New export orders, which contracted in July, returned to expansion in August reportedly due to stronger demand from customers in key export markets.
Output levels rose, driven by sustained client demand, but the pace of growth was the weakest in a year, S&P Global said. New orders also expanded, albeit modestly, registering the slowest growth rate since October 2022.
Employment growth eased to its slowest rate in seven months, S&P Global said. Despite increased staffing, backlogs of work grew slightly due to logistics issues.
Confidence grew at a slower pace, with optimism underscored by planned investments, new products and the prospect of new customers, the survey showed.
Reporting by Alexander Marrow; Editing by Hugh Lawson
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
