FX.co ★ Russia Manufacturing Contracts for 3rd Month

Russia’s S&P Global Manufacturing PMI edged up to 49.9 in October from 49.8 in September, pointing to a milder contraction in the sector for the third month in a row, as both output and new orders declined only slightly. New orders fell for a third consecutive month amid reports of intensified competition, weak demand, and reduced purchasing power among customers, while foreign demand registered its steepest drop since May 2022. Output also contracted for the third month, though at a somewhat slower rate, and backlogs of work continued to shrink for the twenty-first consecutive month.

Faced with lower workloads, firms cut employment again, and purchasing activity declined at an accelerated pace. On the cost side, input prices rose, driven by higher material costs and increased supplier charges, although the overall rate of input cost inflation eased to a seven-month low. Output price inflation also slowed, reaching its lowest level since April, amid strong competitive pressures. Meanwhile, business confidence strengthened, climbing to a four-month high.