The S&P Global Purchasing Managers' Index (PMI) for Russia's manufacturing sector fell to 47.5 from 50.2 in May, confirming a sharp contraction — in fact, the largest in the last 3 years.
Points of attention
- The employment level in Russia has decreased, with manufacturers cutting costs and experiencing the sharpest job losses since April 2022.
- Experts warn that Russia faces significant economic difficulties, with production falling rapidly and new orders declining, highlighting the urgency for remedial actions.
Russia faces new serious challenges
According to experts, production in the aggressor country has been falling rapidly for the fourth month in a row.
They also noted that the number of new orders began to decline after a temporary increase in May.
Such serious metamorphoses were primarily influenced by the decline in customers' purchasing power, as well as weak demand.
The aggressor country also cannot ignore the fact that the decline in new export orders has accelerated to the fastest pace since November 2022.
According to survey participants, unfavorable exchange rates have negatively affected competitiveness in key export markets, S&P Global said in a statement.
Moreover, it is indicated that the employment level has decreased for the second time in three months — this was facilitated by the fact that manufacturers began to reduce costs.
The pace of job losses was the sharpest since April 2022, reflecting declining production needs.
