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Russia Manufacturing Growth Slows For Second Month

The Russian manufacturing activity slowed for a second month in January to its lowest level in four months, and signaled a marginal improvement in the health of the Russian manufacturing sector, survey data from IHS Markit showed on Friday.

The Purchasing Managers' Index, or PMI, for manufacturing fell to 50.9 in January from 51.7 in December.

Any reading above 50 indicates expansion in the sector.

The latest score was the lowest since September.

Output increased at a fractional rate and at slowest pace in five-months.

Notably, new order growth remained solid, despite easing to a three-month low, thanks to the introduction of new products in the market and increasing client demand. Meanwhile, export orders fell for the first time since July 2018.

On the price front, both output and input charge inflation accelerated due to a hike in VAT. Input cost inflation hit a four-month high and output price rose at the fastest pace since September 2015.

Employment was reduced for the first time since August due to slower rise in production.

"The Russian manufacturing sector shifted down a gear in January, with goods producers posting only a marginal overall improvement in the sector," Sian Jones, Economist at IHS Markit, said.

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