PMI in Russian manufacturing slips to 48.1 in Dec from 48.3 in Nov - S&P Global
MOSCOW. Dec 29 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's manufacturing sector fell to 48.1 points in December from 48.3 points in November, S&P Global research shows.
Operating conditions in the sector deteriorated for the seventh consecutive month.
Index readings above 50.0 points indicate growth in business activity, while those of less than 50.0 show a decline.
The contraction in production accelerated in December. Output fell for the tenth consecutive month at the fastest pace since March 2022. Respondents linked this to weak demand and a decline in new orders.
New orders continued to contract, albeit at the slowest pace in the current seven-month downturn period. Companies noted customer hesitancy and weaker purchasing power. New export orders also declined due to deteriorating demand.
Against this backdrop, companies reduced their workforce numbers in December. Employment decreased during three of the last four months. The pace of job cuts was marginal but was the fastest since September, reflecting subdued production requirements. At the same time, companies were able to further reduce backlogs of work.
December data indicated a rise in input costs across the sector. The rate of input cost inflation was the highest since March, as companies reported higher prices from suppliers. Release prices increased for the second consecutive month, as producers sought to pass on higher costs to clients. Although the rate of output charge inflation eased compared to November, it was the second-fastest since May.
Purchases of raw materials declined at a moderate pace, linked to lower production requirements.
Business confidence among companies regarding the sector's prospects for the next 12 months weakened somewhat. Respondents who remained optimistic linked their expectations to hopes for a recovery in market conditions and planned investments in new production capacity. Nevertheless, the degree of optimism in the sector fell to its lowest level since May 2022, amid concerns about weakening demand.
