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Financial News: Russian Factory Activity Logs Marginal Expansion

Russian Factory Activity Logs Marginal Expansion

03/03/2025 - 03:51:00 (RTTNews)

(RTTNews) - Russia's manufacturing sector activity expanded slightly in February amid stagnated demand conditions, survey results from S&P Global showed on Monday.

The manufacturing purchasing managers' index, or PMI, dropped to 50.2 in February from 53.1 in January. Nonetheless, a reading above 50 indicates expansion.

The slower upturn in the health of the sector partly stemmed from a weaker rise in output and broadly unchanged new order inflows, the survey said.

The growth in output eased to the weakest in the current four-month sequence of expansion. Overall demand climate almost stalled in February despite an increase in new export business amid stronger demand from neighboring countries.

On the price front, input price inflation eased to a 6-month low, and selling price inflation was the weakest in more than a year.

In response to broadly stagnating new orders, firms moderated their hiring activity in February. Meanwhile, employment increased, largely driven by the hiring of full-time workers, but at only a fractional pace.

Looking ahead, manufacturers remained strongly optimistic about year-ahead output expectations amid hopes of greater customer demand and new production facilities buoyed optimism.

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