PMI in Russian manufacturing falls to 47.5 in June from 50.2 in May - S&P Global
MOSCOW. July 1 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's manufacturing sector plunged to 47.5 points in June from 50.2 points in May, S&P Global research shows.
The latest data point to a deterioration in operating conditions in the manufacturing sector, with the steepest drop in activity since March 2022.
Index readings above 50.0 points indicate growth in business activity, while those of below 50.0 show a decline.
New orders fell again in June at the fastest pace since March 2025, with respondents attributing this to lower customer purchasing power and weak demand. New export orders also dropped at the fastest pace since November 2022, with respondents citing unfavorable exchange rates as a factor.
Production volumes in the sector fell for the fourth month in a row at the fastest pace since March this year.
Companies cut their workforce in June at the fastest pace since April 2022 amid a lower influx of new orders. Easing capacity pressures also led to an accelerated decline in the volume of unfulfilled work at the end of the second quarter.
Meanwhile, companies recorded some softening of cost inflation in June, with the growth rate being the weakest since before the Covid-19 lockdown in February 2020. Respondents attributed this to discounts received from suppliers, as well as a halt in growth of material prices.
Companies tried not to raise selling prices much amid subdued demand. The growth rate of selling prices was the slowest since November 2022. Purchasing activity in the sector contracted at the fastest pace since March 2022.
The level of business confidence of respondents regarding the production prospects for the next 12 months remained elevated. Companies have expressed hope for an improvement in demand and the fulfillment of production plans. Meantime, the level of optimism fell to the lowest level since October 2022, with survey participants expressing concerns about global economic uncertainty.
