Russian Factory Activity Logs Marginal Expansion

(RTTNews) - Russia's manufacturing sector activity expanded for the third straight month in December, though the pace of growth eased amid softer rises in output and new orders, survey results from S&P Global showed on Friday.

The manufacturing purchasing managers' index, or PMI, dropped to 50.8 in December from 51.3 in November. Nonetheless, a reading above 50 indicates expansion.

The overall upturn was supported by further expansions in output and new orders, albeit the rate of growth eased in both cases. Sales from abroad rose for the fifth straight month on the back of greater business with neighboring countries.

The slower expansion in output was due to softer overall demand conditions and shortages of some materials.

Subsequently, firms cut workforce numbers further, and confidence in the outlook for output in the coming year was dented, the survey said.

On the price front, cost pressures remained elevated in December, led by higher raw material prices and unfavorable exchange rate movements. Output price inflation also remained high despite easing to a 3-month low.

Due to supply chain issues and the possibility of increased material and transportation costs, businesses increased their input purchases as stock levels continued to decline.