Manufacturing activity in Russia rose for the 13th consecutive month in May – PMI

June 1 (Reuters) – Manufacturing activity in Russia rose for the 13th consecutive month in May, with employment rising at the fastest rate in more than two decades, despite a decline in new export orders, according to an S&P Global business survey on Thursday.

The S&P Global Purchasing Managers’ Index (PMI) rose to 53.5 in May from 52.6 in April, continuing its rise above the 50.0 mark that separates expansion from recession.

“Overall growth was supported by faster growth in production and new orders, with employment rising at a record pace for 22 1/2 years,” said S&P Global.

Employment was supported by stronger customer demand, which also contributed to the reduction of backlogs.

“The pace of job creation was the fastest since November 2000 as firms adjusted employment upwards on rising manufacturing demand,” said S&P Global.

Growth in the sector over the past year has been driven by domestic demand, while new export orders have fallen stubbornly amid Moscow’s “special military operation” in Ukraine.

The volume of export orders rose in April for the first time in over a year, but returned to a decline in May.

“Manufacturers have suggested that tough demand conditions in key export markets are hampering new export sales,” S&P Global said in a statement.

The outlook for future production was favorable, but worse than in April.

“The optimism is reportedly fueled by planned investments in new products and processes, as well as hopes for continued growth in customer demand,” said S&P Global. (Alexander Murrow)