PMI in Russian manufacturing climbs to 49.8 in Sept from 48.8 in Aug - S&P Global

MOSCOW. Oct 1 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's manufacturing sector rose to 49.8 points in September from 48.8 points in August, S&P Global research shows.

The latest data point to a slight deterioration of operating conditions in the sector, less pronounced than in the previous period.

Index readings above 50.0 points indicate growth in business activity, while those of less than 50.0 show a decline.

Demand remained weak in September and new orders fell for the second consecutive month, the report said. Respondents attributed this to higher prices and competition. The overall decline in total new orders slowed compared to August, but export orders fell at their fastest pace since May 2022.

Against this backdrop, production also fell, although more slowly than a month earlier.

Employment in the sector declined for the tenth consecutive month, and fell at the fastest rate since May. Work backlogs decreased again given the ongoing decline in new orders, but the rate of depletion was the slowest in six months.

Rising supplier prices and an unfavorable exchange rate increased companies' operating expenses in September. Cost inflation remained high, but it slowed from August to a three-month low.

Companies tried to pass growing expenses onto selling prices, which increased, but factory gate inflation was the slowest since June.

Purchasing activity in the sector also declined in September, at the fastest rate since April.

Respondents' production expectations for the next 12 months improved, with optimism bolstered by hopes of stronger demand and acquisition of new customers.