Russia’s manufacturing activity expanded at a marginal pace in May on improved demand conditions and easing price pressures amid sanctions and logistics delays, survey data from S&P Global showed on Wednesday.
The S&P Global Russia Manufacturing Purchasing Managers’ Index, or PMI, rose to 50.8 in May from 48.2 in April. A reading above 50 indicates expansion, while any reading below suggests contraction in the sector.
Although sanctions continued to reduce client demand, new orders and output decreased only at a slower pace in May. However, sanctions had a large effect on new export orders, which fell at the fastest pace on record.
Currency fluctuations and sanctions were attributed to the further rise in cost burdens of manufacturers. Nonetheless, the rate of inflation softened to the slowest since July 2020 as some material prices fell.
Similarly, selling prices also grew at the weakest pace since June 2020.
Firms depleted workforce numbers further in May and solid overall as producers highlighted sufficient capacity to process new work, but also an absence of skilled applicants to replace voluntary leavers.
Looking ahead, manufacturers remained optimistic regarding client demand for the coming twelve months as business confidence rose to a three-month high in May.
The material has been provided by InstaForex Company – www.instaforex.com