Russia’s manufacturing sector saw a slight easing in its downturn in April, as contractions in both output and new orders slowed to a marginal pace, according to a report released by S\&P Global on Monday
The seasonally adjusted Purchasing Managers’ Index (PMI) for the sector rose to 49.3 in April, up from 48.2 in March.
Although still below the 50.0 threshold that separates expansion from contraction, the reading signaled a slower pace of decline and marked the second consecutive month of improvement.
“Although the Russian manufacturing sector remained in contraction territory during April, the latest PMI data pointed to a softer decline in business conditions,” the report stated.
One of the key developments was a renewed decline in employment, ending a three-month streak of net job creation. S\&P Global noted that many firms chose not to replace voluntary leavers as production requirements softened.
Despite the labor market shift, business sentiment remained upbeat. “Confidence among manufacturers remained elevated, with hopes pinned on stronger client demand and plans to expand product ranges,” the report said.
Input cost inflation eased significantly, rising at the slowest pace since February 2020. This was attributed to favorable exchange rate movements against the U.S. dollar, which helped moderate price increases for imported materials. As a result, output charge inflation also slowed, reaching its weakest level since January 2023.
“Input cost inflation softened to its slowest pace in over four years, which filtered through to a weaker rise in output charges,” S\&P Global observed.
Manufacturers also reported a slight increase in purchasing activity during the month as companies looked to rebuild safety stocks amid stabilizing supplier delivery times.
However, client demand remained subdued, continuing to weigh on new orders both domestically and internationally. “Firms noted that strong competition and reduced purchasing power remained key challenges to securing new work,” the report added.
Boluwatife Enome
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