2018.07.0202:37:00UTC+00Russia's Manufacturing Sector Deteriorates Further

Russia's manufacturing activity contracted for the second straight month in June, survey data from IHS Markit showed Monday.

The seasonally adjusted Purchasing Managers' Index, or PMI, dropped to 49.5 in June from 49.8 in May. Any reading below 50 suggests contraction in the sector.

The latest decline was driven by the first fall in new orders since July 2016 and a further drop in employment. Meanwhile, output growth moderated for the second successive month.

On the price front, input price inflation remained marked despite easing from May's 32-month high and the pace of output price inflation was the second-fastest since September 2015.

"On a more positive note, Russian manufacturers remained strongly optimistic towards the output outlook for the year ahead," Sian Jones, Economist at IHS Markit, said.

"Confidence was supported by hopes of greater output growth and product development."