MOSCOW (dpa-AFX) - Russia's manufacturing sector logged a renewed downturn in June amid falls in output and new orders, survey results from S&P Global showed on Tuesday.
The manufacturing purchasing managers' index, or PMI, dropped to 47.5 in June from 50.2 in May. Any reading below 50 indicates contraction.
The survey revealed that the overall deterioration was the sharpest in over three years as new orders returned to decline and output contracted at a steeper rate.
New sales fell at the quickest pace in three months due to reduced purchasing power of customers and weak client demand. Export demand was also weaker amid unfavorable exchange rates. As a result, output also fell the most since March.
In line with weaker demand conditions, Russian manufacturers lowered their workforce numbers, purchasing, and stock holdings, which in turn dampened business confidence in the year-ahead outlook.
On the price front, input price inflation eased notably in June as constructive negotiations with suppliers reportedly led to discounts or suspended hikes in material prices. Consequently, selling price inflation softened to the weakest since late 2022.
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