Russia manufacturing activity at lowest level since November 2020

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Russia’s manufacturing activity deteriorated to its lowest level since November amid weak client demand, survey data from IHS Markit showed on Monday.

The IHS Markit Russia manufacturing purchasing managers’ index, or PMI, fell to 47.5 in July, from 49.2 in June. A PMI reading below 50 signals contraction in the sector.

Production dropped for the first time in seven months in July and new orders fell for the second straight month. New export orders fell for the sixth time in seven months.

The rate of cost inflation was the slowest in 10 months in July. Selling prices increased further. Degree of confidence improved, but a softer pace and was the lowest in nine months, due to new product development and hopes of greater client demand.

Backlogs of work declined further in July and the rate of job shedding accelerated to the fastest since November last year.

“The Bank of Russia recently noted that the economy had returned to prepandemic levels, with our latest forecast expecting industrial production to rise 6.1 per cent on the year in 2021,” Sian Jones, senior economist at IHS Markit, said.

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