July 1, 2019 / 6:06 AM / 3 months ago

Russian manufacturing activity contracts for second month in June -PMI

MOSCOW, July 1 (Reuters) - Russian manufacturing activity shrank for the second straight month in June, hit by a downturn in output and new business, while confidence in the sector fell to a near one-year low, a business survey showed on Monday.

The Markit purchasing managers’ index (PMI) reading slid to 48.6 in June from 49.8 the previous month, further below the 50.0 mark that separates expansion from contraction.

“The Russian manufacturing sector continued to show signs of weakness in June, as production and new business dipped into contractionary territory for the first time since August 2018,” said Sian Jones, an economist at IHS Markit that compiles the survey.

“Weighing heavily on overall demand conditions were lacklustre export sales.”

The rate of decline in new export orders quickened to its fastest since February. Panellists highlighted concerns over weaker client demand.

Companies in the manufacturing sector also registered a third consecutive decrease in workforce numbers in June, the monthly survey showed.

Confidence among manufacturing companies declined even though they remained upbeat about the output outlook, with the degree of confidence higher than the series trend, the survey showed.

Reporting by Andrey Ostroukh; Editing by Hugh Lawson

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