Russian Manufacturing PMI Weakens Again In July

Russian manufacturing expanded in July at the slowest pace in two and a half years as new orders fell amid high inflation and companies cut jobs, according to the VTB Bank Europe's Purchasing Managers' Index, which fell to 50.4 from 50.9 in June. A figure above 50 indicates growth, below 50 a contraction. The bank surveyed 300 purchasing executives to produce the index.



Weakness in new orders growth and the first decline of exports orders since Sept. 2007 were behind the fourth consecutive monthly decline in the index. Higher prices for metals, energy, fuel, plastics, food, chemicals and timber underpinned concerns of survey respondents over the economic outlook, according to VTB.

Russian industrial production rose in June at an incredibly low year on year rate of 0.9%, down from 6.7% in May, and the slowest pace in five and a half years as production of locomotives, cement and oil fell. The result was the slowest rate of growth since the Russian Statistical Service (Rostat) began calculating industrial production under a new methodology in 2003. Production dropped 1.4 percent from May.