Moscow, Russian Federation (4E) – The manufacturing sector in Russia recorded an eighth straight month of decline in June due to weaker new orders, according to survey results from Markit Economics released Tuesday.
The purchasing managers’ index (PMI) from HSBC was at 49.1 in June. The latest reading indicates the slowest decline since last November.
A reading below 50 suggests contraction in manufacturing activity on month.
Last month, new orders in the manufacturing sector fell, raising concerns that output growth may be unsustainable in July. Meanwhile, new export orders dropped for the tenth straight month.
The reduction of new work resulted to an accelerated decline in backlogs last month and slowdown in employment for the 12th month in a row.
HSBC economist Artem Biryukov said that the geopolitics may have played a role on the performance of Russian manufacturing in June. The decline could probably explain the sharp drop in new export orders, amid simultaneous surge in China’s PMI data, Mr. Biryukov added.