03.09.201802:56:00UTC+00Russia's Manufacturing Sector Deteriorates Further

Russia's manufacturing sector contracted for the fourth consecutive month in August, survey data from IHS Markit showed Monday.

The Purchasing Managers' Index, or PMI, rose to 48.9 in August from 48.1 in July. However, any reading below 50 suggests contraction in the sector.

The downturn was driven by marginal falls in both output and new orders.

Consequently, both employment and backlogs declined further amid reduced pressure on capacity.

On the price front, both input and output price inflation intensified in August. Panelists commonly attributed the rise in costs to recently-announced changes in VAT, exchange rate movements and higher raw material prices.