PMI index of Russia's manufacturing industries grows to 48.7 points in Aug vs 47 in July - S&P Global

MOSCOW. Sept 1 (Interfax) - The PMI index of Russia's manufacturing industries grew from 47 points in July to 48.7 points in August, S&P Global said in a study which it published.

A PMI index above 50 indicates a growth in business activity, while a result below 50 points to a decline.

The PMI of the manufacturing industries was below this mark for the third consecutive month.

Activity decreased in the manufacturing sector due to a continuing, though now slower, decline in production and new orders, the press release said, while there was growth in the level of employment in the industry.

The number of new export orders decreased in August for the fifth month of the previous six. Company representatives said that subdued demand among clients was limiting new export sales.

Companies have become more optimistic regarding production prospects for the next 12 months, as shown by greater investment in advertising and the launch of new products on the market.

With this optimism, Russian manufacturing companies employed the highest number of full-time workers since July 2024 in August.

The rise in employment and the decrease in new orders has allowed companies to lower the amount of incomplete orders in August for seventh consecutive month, although the decline was slower than previously.

Russian manufacturing companies said that the growth in exchange rates and decrease in demand for raw materials had weakened pressure from rising prices in August, with the prices of raw growing the least since February 2009.

This, along with more competitive pricing, brought about the first decrease in production costs in nearly three years, which was also the greatest decline since July 2022.