Page 42 - RusRPTAug23

mining (0.7%). On a monthly basis, producer prices went down 0.8%, following a 1% fall in August.
4.3 Industrial sectors and trade 4.3.1 Producers PMI
The health of the Russian manufacturing sector continued to improve in July, albeit slowing growth momentum as compared to the previous months, according to the latest data from S&P Global. (chart) As followed by bne IntelliNews, despite the fallout from Russia's full-scale military invasion of Ukraine, the manufacturing sector ended 2022 with a historically strong expansion in output. Manufacturing PMI since January 2023 continued to trend in positive territory.
However, a closer look at July's PMI report suggests that manufacturing sector is running into capacity constraints as indicated by rising input costs and inventory depletion. This is in line with most recent reports that Russian industry is operating at record-high capacity utilisation and is close to overheating.
The seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) posted 52.1 in July, above the no-change mark of 50.0 indicating expansion, and slightly down from 52.6 posted in June “to signal a
42 RUSSIA Country Report August 2023 www.intellinews.com