MOSCOW (Reuters) -Russia’s manufacturing sector experienced a sharper contraction in October, with new orders declining at the fastest rate in three months, a survey by S&P Global showed on Saturday.
The Purchasing Managers’ Index (PMI) for the sector fell to 48.0 in October from 48.2 in September, marking the steepest decline since July. Any reading below 50 indicates a contraction in activity.
The downturn was driven by a sustained drop in output and new orders, as firms continued to cut employment and input buying to manage costs.
Business confidence also fell to its lowest level since May 2022, reflecting concerns over financial difficulties faced by customers.
Despite the overall contraction, export markets showed signs of recovery, with new export orders returning to growth after two months of decline. Firms attributed this to improved demand in existing markets.
Cost pressures eased as input costs rose at the joint-slowest pace since February 2009, aided by lower metal prices. In response to weak domestic demand, manufacturers reduced their output charges for only the second time in three years, aiming to attract new customers and retain existing ones.
Supplier delivery times improved slightly, marking the greatest improvement since November 2019, as weak demand for inputs reduced pressure on capacity.
The data highlights ongoing challenges for Russian manufacturers, with subdued demand and financial strains at customers dampening the outlook for the sector.
(Reporting by Gleb Bryanski; Editing by Toby Chopra)
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