MOSCOW (dpa-AFX) - Russia's manufacturing sector deteriorated for the first time in 2021, amid weak client demand, survey data from IHS Markit showed on Thursday.
The IHS Markit Russia Manufacturing Purchasing Managers' Index, or PMI, fell to 49.2 in June from 51.9 in May. A PMI reading below 50 signals contraction in the sector.
New order inflow and client demand declined in June. Output increased further and production rose marginally.
Backlogs of work decreased sharply in June and firms reduced their workforce. Suppliers' delivery time lengthened.
Input costs increased in June and the rate of cost inflation was the fastest on record. Selling prices rose at a softer pace.
'Nonetheless, firms' output expectations remain upbeat amid hopes that demand conditions will tick higher in the year ahead,' Sian Jones, Senior Economist at IHS Markit, said.
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