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Financial News: Russian Factory Activity Falls Most In Nearly 3

Russian Factory Activity Falls Most In Nearly 3 Years

04/01/2025 - 05:45:00 (RTTNews)

(RTTNews) - Russia's manufacturing sector activity deteriorated at the steepest pace in almost three years amid renewed contractions in output and new orders, survey results from S&P Global showed on Monday.

The manufacturing purchasing managers' index, or PMI, dropped to 48.2 in March from 50.2 in February. Any reading below 50 indicates contraction.

The deterioration in the health of the sector was the first since last September and the strongest since April 2022, the survey said.

The decline in manufacturing output was solid in March and was the sharpest since July 2022. New orders fell for the first time in five months as both domestic and foreign client demand faltered.

On the price front, input price inflation eased to the lowest since December 2022 as more favorable exchange rate movements limited hikes in imported goods prices. Selling prices also rose at a softer pace in March.

Despite sluggish consumer demand, Russian manufacturers of goods were more optimistic about their output estimate for the next twelve months, driven by planned investment in new product development and advertising.

As a result, Russian manufacturers continued to hire additional workers, though the rate of job creation was only marginal.

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