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Russia Manufacturing Shrinks On Weaker Demand

Russia’s manufacturing sector contracted in September after modest growth in the previous month, mainly due to weaker demand and cost pressures, survey data from IHS Markit showed on Wednesday.

The headline seasonally adjusted IHS Markit Russia Manufacturing purchasing managers’ index dropped to 48.9 in September from 51.1 in August.

A PMI reading below 50 suggest contraction in activity.

The latest decline was largely driven by a fall in new orders, especially those from abroad. Meanwhile output continued to increase, albeit at a softer pace. Input prices rose sharply.

The survey data were collected from September 11 to 24.

“Although firms resumed operations following the easing of restrictions, subdued order inflows and muted business confidence did not encourage the expansion of workforce numbers, with the rate of job shedding accelerating,” IHS Markit economist Sian Jones said.

“With uncertainty in the global economy prevailing and domestic demand struggling for momentum, there remains a long recovery path ahead for the manufacturing sector,” the economist added.

The material has been provided by InstaForex Company – www.instaforex.com