Page 61 - RusRPTAug22

growth was a sharper contraction in output as firms struggled to hire and retain workers amid salary competition. Subsequently, workforce numbers declined,” S&P said in a press release.
New orders increased for the second month running and at the fastest rate since April 2019. Stronger demand conditions were largely domestically driven as new export orders contracted again.
At the same time, inflationary pressures remained subdued. The CBR more than doubled
interest rates to 20% on February 28
following the invasion of Ukraine and successfully nipped inflationary pressures
in the bud. Since then the CBR has been able to cut rates four times, bringing
them back below the pre-war level to 8%. Russia is now the only country in
Europe where inflation is falling. Cost burdens rose at the second-slowest pace
since February 2020, reports S&P, with softer increases in input prices
reflected in a solid decrease in selling prices.
Contributing to the lower headline figure was a sixth successive monthly contraction in production during July.
Russian manufacturing firms registered the sharpest fall in output since April, as companies noted raw material shortages and relatively subdued demand conditions. Some firms also noted challenges hiring and retaining employees. Unemployment was at a record breaking 3.9% low for the second month in a row reports Rosstat.
Although new order levels increased at a faster pace, Russian goods producers recorded a renewed fall in employment during July. The fall was marginal overall, but contrasted with the expansion seen in June. Where a decrease in workers was noted, firms linked this to challenges retaining and hiring staff due to salary competition.
The average nominal wages rose 10% from a year earlier to RUB62,457. In dollar terms, thanks to the strong appreciation of the ruble, nominal wages increased to $943 per month in May from $777 the month before, adding to the improving consumer sentiment. (chart) “Despite being slower than the series average, the rate of expansion in new orders was the sharpest since April 2019. The rise in total new
61 RUSSIA Country Report October 2020 www.intellinews.com