News Column

Russia Manufacturing Sector Contracts Further- Markit

July 1, 2014

MOSCOW (Alliance News) - Russia's manufacturing sector contracted for the eighth consecutive month in June, as new orders declined, survey figures from Markit Economics showed Tuesday.

The HSBC purchasing managers' index stood at 49.1 in June. Any reading below 50 indicates contraction in the sector. The latest reading suggested the slowest deterioration since November last year.

The latest reading showed an upward movement in the headline figures, due to the increase of output for the first time in the year so far.

New orders in the manufacturing sector fell in June, signaling a risk that output growth may not be sustained in July. New export orders fell for the tenth consecutive month.

The reduction new work led to a faster decline in backlogs in June and employment fell for the twelfth consecutive month.

On the price front, input price inflation eased further in June from March's three year high, to the weakest since February. Output price inflation also slowed sharply to a four-month-low, as a stronger ruble reduced pressure on import prices.

"The geopolitics must must have taken its toll on the performance of Russian manufacturing in June, we think," HSBC economist Artem Biryukov said.

"It is probably the best explanation of a sharp decline in new export orders, amid simultaneous improvement of PMI data in China."

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Source: Alliance News

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