Russian manufacturing activity returns to growth in October -PMI
MOSCOW, Nov 1 (Reuters) - Russian manufacturing activity expanded in October for the first time since May, supported by faster growth in output and new orders but constrained by supply chain disruptions, a survey showed on Monday.
IHS Markit's Purchasing Managers' Index (PMI) rose to 51.6 from 49.8 in September, moving back above the 50.0 mark that separates expansion from contraction for the first time since May, when it stood at 51.9.
"Stronger increases in output and new orders supported the marginal upturn, as firms also recorded a renewed rise in employment," said Sian Jones, an economist at IHS Markit, which compiles the survey.
Orders rose thanks to greater demand from new and existing clients, and employment expanded for the first time in five months.
Foreign client demand, however, contracted for the fifth straight month in October, with the rate of decline accelerating.
"Pressure on capacity remained as supply chains continued to be held back by further disruption," Jones said.
The pace of cost inflation eased to the slowest since September 2020 but firms continued to partially pass on higher input prices costs to their clients.
Still, companies said they hoped the acquisition of new customers, recovering client demand and the development of new products would support their businesses in the coming year.
"We expect a 4.3% increase in industrial production on the year in 2021," Jones said. (Reporting by Anna Rzhevkina; Editing by Alexander Marrow and Hugh Lawson)
