According to a business survey released on Friday, Russian industrial activity dropped at its fastest rate since the early days of the COVID-19 pandemic in May 2020, pulled down by rapidly expanding delivery times and supply shortages.
The S&P Global purchasing managers’ index (PMI) dropped to 44.1 from 48.6 the previous month, considerably below the threshold of 50.0 that distinguishes expansion from contraction.
The study made no note of Russia’s deployment of tens of thousands of troops into Ukraine on February 24, or the harsh economic sanctions that followed.
According to S&P Global, manufacturing businesses’ vendor performance has deteriorated again again.
‘Due to acute material shortages, lead times stretched significantly, and to the largest extent on record,’ it stated.
Material shortages have also hampered efforts to restock, according to companies.
Since the series began in September 1997, the survey has documented the largest increase in selling prices and the steepest increase in input prices.
Employment fell for the second month in a row, owing to a drop in customer demand and new orders, with the pace of employment loss reaching its highest level since July 2020.
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