Markit: Russia’s Manufacturing PMI falls to 49.5 in July

MOSCOW, Aug 1 (PRIME) -- The Purchasing Managers’ Index (PMI) in the Russian manufacturing sector decreased to 49.5 points in July from 51.5 points in June, falling below the 50 point mark separating growth of economic activity from contraction, according to a Markit research note published on Monday.

The downturn in the sector reflected weak underlying demand for Russian goods, as both new export orders and new work levels slipped into contraction territory, Markit said.

Although production levels grew, the rate of expansion was only marginal.

Workforce numbers in Russia’s goods producing sector were lowered in July, ending a two-month sequence of job growth. Backlogs of work accumulated for the first time since January 2013.

“Deteriorating demand conditions continued to weigh on the economic performance of Russian manufacturers during July. The headline figure again slipped below the 50.0 no-change mark after declines in total new orders were reported. This contraction led to an easing of production growth and job cuts across the sector,” Samuel Agass, an economist at Markit, commented on the survey.

Vendor performance deteriorated for the 30th month in succession in July, and at the sharpest rate since March 2011.

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