Russia’s manufacturing industry contracts in February as new orders fall -PMI


An employee walks through an assembly line at the Aurus manufacturing plant in the city of Yelabuga, Republic of Tatarstan, Russia May 31, 2021. REUTERS/Alexey Nasyrov/Files

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March 1 (Reuters) – Russian manufacturing activity shrank in February as new orders fell for the first time in six months as companies felt the impact of the COVID-19 pandemic, a survey showed on Tuesday.

The Markit Purchasing Managers’ Index (PMI) fell to 48.6 in February from 51.8 the previous month, slipping below the 50.0 mark that separates expansion from contraction for the first time since September .

“Weak market demand and the continued impact of the pandemic led to the first declines in production and new orders since August 2021, both of which were strong overall,” said Sian Jones, senior economist. at IHS Markit, which compiles the survey.

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New export orders fell at the fastest pace in four months, while inflationary pressures intensified as supplier costs rose and logistical issues continued to hamper supplier deliveries, according to the report. monthly survey.

Russian manufacturers also saw the biggest decline in employment since August 2021, according to the survey which did not mention the Russian attack on Ukraine which took place on February 24 and triggered severe economic sanctions. against Moscow and the Russian central bank. Read more

“Nevertheless, manufacturers remained optimistic about production prospects for the year ahead. Optimism was not dampened by the current weak demand and persistent headwinds, and reached its highest level since August 2019,” Jones said.

Russia calls its actions in Ukraine a “special operation” which it says is not designed to occupy territory but to destroy the military capabilities of its southern neighbor and capture what it sees as dangerous nationalists.

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Reuters reporting; Editing by Susan Fenton

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