Russia manufacturing nears stabilisation in October, PMI shows

Russia Manufacturing PMI Indicates Sector Nears Stabilisation in October 2023

Overview of Russia's Manufacturing Sector Performance in October 2023

MOSCOW, Nov 2 (Reuters) - Russia's manufacturing sector was broadly stable in October as declines in output, new orders and employment eased, a business survey showed on Monday.

S&P Global Russia Manufacturing PMI Results

• The S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) ticked up to 49.9 in October from 49.8 in September. The 50 mark separates growth from contraction

Output and New Orders

• Output fell for a third straight month but only fractionally. New orders also slipped for a third month, though the fall was the softest in that period

Export Orders and International Demand

• New export orders contracted for a 12th consecutive month, with the decline the steepest since May 2022, which respondents linked to fewer orders from other Commonwealth of Independent States countries, especially Kazakhstan

Labour Market and Employment Trends

Employment Changes

• Employment fell again as firms cited layoffs and voluntary resignations, but the decline was the slowest so far this year. Backlogs of work shrank for a 21st month, though at the slowest pace since February

Input Prices, Output Prices, and Purchasing Activity

Price Movements

• Input prices rose sharply but at the slowest pace in seven months, while output price inflation slowed to its weakest since April amid competitive pressure. Purchasing activity fell at the fastest pace since March as firms used existing inventories

Business Confidence and Market Sentiment

Outlook and Expectations

• Business confidence improved to its highest level since June, helped by hopes of a more stable market environment and new customer wins, although the overall level of sentiment remained historically weak

Reporting Credits

(Reporting by Gleb Bryanski; Editing by Hugh Lawson)