(Reuters) – Russian manufacturing activity grew only slightly in February as overall demand stagnated, a business survey showed on Monday.
The S&P Global Purchasing Managers’ Index (PMI) for Russian manufacturing fell to 50.2 in February from 53.1 in January, just staying above the 50 level that separates expansion from contraction.
The slower upturn was attributed to a weaker rise in output and broadly unchanged new order inflows. Overall demand conditions stagnated, despite a renewed expansion in new export sales.
“Differing from the trend for total new orders, Russian manufacturers indicated a renewed rise in new export sales midway through the first quarter,” S&P Global said. “Anecdotal evidence mentioned that greater demand from neighbouring countries boosted new export orders.”
Russia’s significant spending on military equipment and weapons since invading Ukraine in February 2022 has buoyed a manufacturing sector that otherwise may have suffered as some countries shunned Moscow.
The pace of production growth was the slowest in four months, with some firms citing subdued client demand, while purchasing activity declined for the first time in two-and-a-half years as firms utilised existing stocks to fulfil orders.
Hopes for an uptick in customer demand and the use of new production facilities underpinned strong expectations for future output.
“Business confidence remained upbeat, as firms anticipate further output growth in the coming year,” S&P Global said.
(Reporting by Alexander Marrow; Editing by Christina Fincher)
Comments