In December, Russia's manufacturing sector sustained its growth for the third consecutive month, although the rate of expansion moderated, influenced by slower increases in output and new orders, according to S&P Global's survey results released on Friday.
The Manufacturing Purchasing Managers' Index (PMI) fell slightly to 50.8 in December from 51.3 in November. Nevertheless, a reading above 50 signifies growth.
The overall positive trend continued, driven by further increases in output and new orders, albeit at a reduced pace. International sales grew for the fifth consecutive month, bolstered by an uptick in business from neighboring regions.
The deceleration in output growth was attributed to subdued demand conditions and material shortages.
As a result, companies continued to reduce their workforce, and confidence in future output took a hit, according to the survey.
On the pricing front, cost pressures remained high in December, sparked by increased raw material prices and unfavorable exchange rate fluctuations. While output price inflation remained elevated, it eased to a three-month low.
In response to supply chain challenges and potential rises in material and transportation costs, businesses boosted their input purchases, despite ongoing declines in stock levels.
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