Russia's manufacturing PMI returns to growth in June

[MOSCOW] Russian manufacturing activity grew in June for the first time since November as output and new orders rose, the Markit purchasing managers' index (PMI) showed on Friday.

The index's headline reading rose to 51.5 from 49.6 in May, above the 50.0 mark that separates expansion from contraction. The rate of growth accelerated to its fastest in 19 months.

Driving output was the biggest increase in new order intake for nearly two years, ending three months of contraction.

"However, the rise stemmed from the domestic market only, as new export orders contracted further," said Samuel Agass, an economist at Markit.

Fewer new export orders have been registered in each of the past 34 months, although the latest contraction was the smallest in that period, according to the survey.

"Encouragingly, goods producers look intent on fuelling output growth," Mr Agass said.

"With backlogs also edging closer to stabilisation, Russia's manufacturing sector could be set to shift into a higher level of growth over the second half of 2016."

REUTERS