Russia’s Factories Shrink Further in September as PMI Drops to 48.2
Russia’s manufacturing sector continued to weaken in September. The PMI (Purchasing Managers’ Index) fell to 48.2, down from 48.7 in August. A PMI below 50 shows that factories are shrinking, and this marks the fourth month in a row of decline.
Production and new orders dropped because many customers are buying less. Companies are also cutting jobs. Many workers are leaving, and firms are not hiring replacements, leading to the largest drop in factory employment since March.
At the same time, input costs rose at the fastest pace in four months due to supply chain problems and currency changes. But companies only raised selling prices slightly, showing they cannot fully pass the higher costs to customers.
Despite these challenges, there is a small sign of hope. Business confidence improved, reaching the highest level in four months. Manufacturers are optimistic that new products and stronger demand may help the sector recover in the coming months.
Impact:
Russia’s manufacturing might stay under pressure if demand stays weak. Rising costs could reduce profits, but growing confidence might possibly lead to a gradual recovery.