Russian manufacturing contracts slightly as job cuts hit fastest since May, PMI shows

Russia Manufacturing Sector Contracts as PMI Rises Slightly, Job Losses Accelerate

September 2024 Manufacturing PMI Report Overview

MOSCOW, Oct 1 (Reuters) - Russia's manufacturing sector contracted slightly in September as weak demand drove further declines in output and new orders, a business survey showed on Thursday.

PMI Index and Output Trends

• The seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in September from 48.8 in August, a survey by S&P Global showed. The 50-mark separates growth from contraction.

Output and New Orders

• Output fell for a second straight month, though the pace of decline eased from August as firms linked lower production to weak demand and softer new order inflows.

• Total new orders also fell for a second month running, with companies citing higher prices and competition. Export orders dropped for an 11th consecutive month and at the sharpest pace since May 2022.

Employment and Cost Pressures

Job Losses and Employment Trends

• Employment declined for a 10th straight month, with the pace of job shedding the fastest since May. Firms often linked lower headcounts to the non-replacement of voluntary leavers.

Cost and Price Developments

Cost Pressures

• Cost pressures remained marked but eased to a three-month low, while output price inflation slowed to the weakest since June. Supplier delivery times lengthened to the greatest extent since October 2024 amid transportation delays and logistics issues.

Outlook and Optimism

Future Expectations

• Manufacturers were more upbeat about the year-ahead outlook, with optimism rising to a three-month high on hopes of stronger demand and new customers, although confidence remained below the series average.

(Reporting by Gleb Bryanski; Editing by Toby Chopra)