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Russian factory activity expands at fastest rate in Sept since 2019 - PMI

Published 10/03/2022, 02:04 AM
Updated 10/03/2022, 05:12 AM
© Reuters. FILE PHOTO: Smoke billows from a chimney in an industrial area on a frosty day in the city of Omsk, Russia January 23, 2022. Picture taken with a drone. REUTERS/Alexey Malgavko

© Reuters. FILE PHOTO: Smoke billows from a chimney in an industrial area on a frosty day in the city of Omsk, Russia January 23, 2022. Picture taken with a drone. REUTERS/Alexey Malgavko

MOSCOW (Reuters) -Russian manufacturing activity grew at its fastest rate in 3-1/2 years in September, driven by rises in production, new orders and client demand, a business survey showed on Monday, though Western sanctions continued to weigh on export business.

The S&P Global (NYSE:SPGI) Purchasing Managers' Index (PMI) rose in September to 52.0 from 51.7 in the previous month, climbing higher above the 50.0 mark that separates expansion from contraction to its highest point since March 2019.

"Client demand was focused on domestic customers, however, as new export orders declined steeply," S&P Global said in a monthly survey. "The decrease in foreign client demand was attributed to the loss of customers and the impact of sanctions."

The United States and European Union last week promised to impose more sanctions on Moscow after Russia staged referendums in four Ukrainian regions and later declared that it was annexing them.

Western governments and Kyiv said the move was a breach of international law.

Employment rose at the fastest pace since January, which firms attributed to greater production requirements and a rise in new order inflows.

It was not clear how heavily President Vladimir Putin's partial mobilisation order, made on Sept. 21, had weighed on workforce numbers. Tens of thousands of men have been drafted into the army or have fled abroad since then.

© Reuters. FILE PHOTO: Smoke billows from a chimney in an industrial area on a frosty day in the city of Omsk, Russia January 23, 2022. Picture taken with a drone. REUTERS/Alexey Malgavko

The same could be said for sentiment about future output, which rose in September to its highest since March 2019.

"Greater optimism reportedly stemmed from new product development, greater import substitution and hopes of an uptick in client demand," S&P Global said.

Latest comments

The russians are in big process of trying to produce western products. Never mind all kinds of patents and worldwide rights, Russians will steal everything they can from western world and try to reproduce this in Russia i.e. macdonalds, Starbucks, Lego, ikea, technology etc. They plan to live off eachother in a closed economy never exports and then get money from the world by selling ressources like oil, gas and minerals. Good strategy if you dont care about the companies rights outside Russia. Any complaints with world courts will be disregarded by Kremlin
Their new car production where everything is missing shows the result...a mutant car with parts of old russia and western technology.
ye sure....nobody trusts their numbers
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