PMI in Russian manufacturing falls below critical level to 48.2 in Mar from 50.2 in Feb - S&P Global
MOSCOW. April 1 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's manufacturing sector fell to 48.2 points in March from 50.2 points in February, S&P Global research shows.
The sector saw a deterioration of operating conditions for the first time since last September and it was the steepest decline since April 2022.
Index readings above 50.0 points indicate growth in business activity, while those of less than 50.0 show a decline.
Production levels fell in March, ending a four-month sequence of expansion. The decline in output was the sharpest since July 2022, S&P Global said. Lower new order inflows drove the decrease, falling for the first time since last October and at the fastest pace in almost three years. Both domestic and foreign client demand dropped.
But input costs rose at a subdued pace, as the rate of inflation slowed in March. Although raw material costs continued to rise, more favorable exchange rate movements limited growth for imported goods prices.
As demand weakened, manufacturers sought to boost new sales and price their items competitively. Output charges rose further, but much more slowly than in March. The rate of inflation in selling prices was below the slowest for two years.
Despite weak demand, Russian manufactures were more upbeat about the year-ahead outlook for output. Confidence was reportedly driven by planned investment in new product development and advertising, and the level of positive sentiment was the highest in four months. Against this backdrop, Russian manufacturers continued to hire additional workers in March: the rate of job creation was marginal but was the second-fastest since last August.
Greater workforce numbers and lower new work intakes led to a sharper decline in backlogs of work at manufacturers in March. The fall was the steepest since February 2024. Input fell during March, as firms opted to utilize their stocks to fulfil order requirements: the drop in purchasing activity was the sharpest since August 2022.
