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Russia factory growth slowest since August 2016

Staff Writer |
Russian manufacturing sector expanded at the weakest pace in nine months during April as output and new order growth eased amid deteriorating confidence, survey results from IHS Markit showed.

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The Purchasing Managers' Index for the factory sector dropped to 50.8 from 52.4 in March. A reading above 50 suggests growth in activity. The score signaled the weakest growth since August 2016.

Output and new order growth slowed to eight-month lows and business confidence dropped to the lowest level since January 2016. Employment contracted for a second straight month and at the fastest pace since March 2016. However, backlogs declined for the first time in seven months.

Inflationary pressures were relatively weak in April though input prices rose at the fastest pace since last November. Output prices increased for the first time since January.

"Following solid growth in the first quarter the April survey data signal a loss of momentum in the Russian manufacturing sector," IHS Markit economist Sian Jones said.

"The latest PMI data suggest that manufacturing will weigh on overall industry growth in the second quarter."

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