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. Last Updated: 07/27/2016

Growth in Manufacturing Slowed Down in October

The growth of the nation’s manufacturing sector slowed considerably in October, taking the Moscow Narodny Bank Purchasing Managers’ Index to its lowest level since January, bank officials said Wednesday.

The seasonally adjusted PMI, intended to give a snapshot of business conditions, fell to 55.1 in October from 56.5 in September, said the London-based bank, which commissions the survey.

The PMI stood at 54.6 in January.

"The slower pace of growth reflected by the Purchasing Managers’ Index was largely caused by a weakening in the rate of growth of new orders during the month," the bank’s survey said.

Readings above 50 signal an increase on the previous month, while readings below 50 signal a contraction. The PMI has been above 50 since January 1999.

The slide of the index, based on a monthly survey of 300 purchasing executives in local manufacturing companies, signaled a decrease in sales levels and a slower overall growth of order books, the bank said.

Foreign demand was weaker in October, and export orders rose at the slowest rate since January 1999, the survey showed.

"Overall purchasing activity rose consistently for the 22 months running in October, but at a rate well down on last month’s recent peak, as higher output was increasingly satisfied from stocks due to a lack of funds at many panel firms," it said.

However, manufacturing employment continued to rise strongly in October to increase capacity in order to satisfy growing sales and clear a backlog of orders, the survey said.