Russia: Manufacturing PMI falls in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 52.1 in July, down from June’s 52.6. July’s result marked the worst reading since October 2022. As such, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in manufacturing sector operating conditions from the previous month.
July’s cooling, which marked the weakest result in nine months, was chiefly driven by slowing new business growth amid a renewed fall in export orders. Moreover, manufacturing output slowed and was the weakest in the current 12-month sequence of growth. More positively, manufacturing firms expanded employment at a solid pace, with backlogs of work being depleted in turn.
With regards to prices, input cost inflation accelerated again at the beginning of Q3 and was the fastest since April 2022. Finally, business sentiment hit an over four-year high in July, on hopes of stronger demand conditions, a sustained increase in new orders and planned investment in product development.