Russian manufacturing activity returns to growth in May amid war: Survey

Russian manufacturing activity expanded in May after three months of contraction and price pressures eased notably, but sanctions continued to dent client demand, a survey has shown.

The S&P Global Purchasing Managers’ Index (PMI) rose to 50.8 from 48.2 in the previous month, climbing above the 50.0 mark that separates expansion from contraction for the first time since January.

“Slower declines in output, new orders, employment and stocks of purchases all helped to boost the seasonally adjusted PMI,” S&P Global, which compiles the index, said. Actual manufacturing output continued to fall in May, S&P Global said.

Exports remained in steep decline, as Russian firms have been severed from the global economy and face significant disruption to their supply chains.

AJ