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. Last Updated: 07/27/2016

Manufacturing Output Rises For 20th Consecutive Month

Growth in Russian manufacturing output, order books and employment accelerated in August, taking the Moscow Narodny Purchasing Managers’ Index to a five-month high, Moscow Narodny Bank said Friday.

The London-based bank, which commissions the survey that produces the index, said the PMI rose to 56.4 in August, up from 55.9 in July.

Readings above 50 signal an increase on the previous month, while readings below 50 signal a contraction.

The bank said the improvement in the seasonally adjusted index, based on a monthly survey of 300 purchasing executives in local manufacturing companies, signaled an expansion of the manufacturing economy for the 20th consecutive month.

"Output, order books and employment all rose at stronger rates than in July.

"Input prices also continued to rise, although the pace of growth eased to a four-month low," it said.

However, bank group economist Paul Forrest was quoted as saying: "Despite the evident vibrancy of the economy, access to working capital remains a major constraint on growth. Inflationary pressures are now becoming a major feature."

Moscow Narodny said bottlenecks in supply and the sustained growth of global demand for commodities allowed increasing numbers of suppliers to raise prices in August.

High oil prices also pushed up energy costs.

Producer prices in July rose 3.3 percent month on month, compared with a 2.3 percent rise in June, according to official figures.

Consumer price inflation slowed in July to 1.8 percent month on month from 2.6 percent in the previous month.