In October, Russia's manufacturing sector showed signs of recovery with a moderation in the decline of output and new orders, according to the latest survey data from S&P Global released on Friday.
The manufacturing purchasing managers' index (PMI) improved to 50.6 in October, up from 49.5 in September. A PMI reading above 50 signifies sector expansion, while a figure below 50 indicates contraction.
Despite ongoing contractions in output and new orders, the rate of decline was slight, the survey indicated. On a positive note, new export orders experienced robust growth, climbing at the quickest rate since early 2008, driven by strong demand from adjacent countries.
Russian manufacturers reported an increase in employment due to rising capacity pressures.
In terms of pricing, input cost inflation rose to a three-month peak, fueled by increased costs of shipping and rail transport, higher supplier prices, and adverse currency exchange rate fluctuations. Consequently, output prices increased at an accelerated pace.
Companies maintained an optimistic outlook regarding future output, supported by planned investments in automation and new product development. However, the growth in input purchases slowed as companies chose to utilize existing inventories to bolster sales and production.
