Page 46 - RusRPTAug21

4.3 Industrial sectors and trade 4.3.1 Producers PMI
Russia’s manufacturing sector saw a deterioration of operating conditions in July 2021, seeing a fall in production and a steeper decline in new orders, and overall weak client demand, latest PMI report by IHS Markit shows.
As followed by bne IntelliNews, previously in June Russia’s strong economic recovery from last year’s crisis spluttered as soaring producer prices caused the manufacturing PMI to shrink for the first time this year.
In July the weakness continued, with the headline seasonally adjusted IHS Markit Russia Manufacturing PMI posting 47.5, down from 49.2 in June, remaining below the 50.0 no-change mark and showing the sharpest decline since November 2020.
"Russian manufacturers signalled a further downward trend in the health of the sector during July. A stronger fall in new orders drove a renewed decline in output, and one that was the fastest since the depths of the pandemic in May 2020," senior economist at IHS Markit Sian Jones commented.
On the renewed sharp contraction in production across the manufacturing sector in July, a number of survey respondents noted that the decrease in output was due to weak client demand and a drop in new sales. At the same time, new orders fell for the second month running at the start of the third
46 RUSSIA Country Report August 2021 www.intellinews.com