Page 64 - RusRPTJul23

4.3 Industrial sectors and trade 4.3.1 Producers PMI
The S&P Global Russia Composite Purchasing Managers' Index (PMI) recorded a decline in May 2023, reaching a three-month low of 54.4 compared to the previous month's reading of 55.1. Despite the decrease, this marked the fourth consecutive month of expansion in private sector activity, although the slower growth in the service sector had a dampening effect on the overall pace of growth.
The report indicated that new orders continued to grow at a solid pace, although softer demand in the service sector offset a sharper growth in orders for manufacturing. Employment levels also rose, experiencing the second-fastest increase since June 2021. The greater capacity allowed firms to address their outstanding business as backlogs of work decreased.
However, the survey noted that new export orders returned to contraction territory, indicating a decline in demand from foreign clients in the manufacturing sector. This highlights potential challenges in international markets.
On the cost side, price inflation accelerated and was marked overall. The pace of increase reached its fastest level in three months, primarily driven by higher
64 RUSSIA Country Report July 2023 www.intellinews.com