S&P Global: Russian factories see slight recovery in May

Russia’s manufacturing sector showed signs of returning to growth in May, with the latest S&P Global Purchasing Managers’ Index (PMI) rising to 50.2 from 49.3 in April, indicating a slight improvement in business conditions.

The upturn was supported by a rise in new orders, the fastest since the start of the year, driven by stronger domestic demand and new customer acquisitions. However, export orders continued to decline marginally for the third consecutive month.

Despite increased sales, output fell slightly due to shortages of some materials, which also affected stock levels and input purchasing. Inflationary pressures remained relatively subdued, with input costs and output prices rising at slower rates compared to previous years.

Manufacturers increased staffing levels modestly to boost capacity and reduce backlogs, which fell for the fourth month running. Confidence in future output remained positive, supported by expectations of stronger demand and planned investments, although optimism was the lowest in three months.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama