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. Last Updated: 07/27/2016

Demand Lifts PMI in June

Russian manufacturing expanded in June at the fastest pace since last August as domestic demand strengthened and the economy expanded, Moscow Narodny Bank said.

Moscow Narodny Bank's seasonally adjusted Purchasing Managers Index rose to 52.8 in June from 52.2 in May, the bank said in a statement Friday.

Manufacturing expanded for the seventh month in June, the index showed.

The bank calculates the index from a 1998 base using a monthly survey of 300 purchasing manufacturing executives. A figure above 50 indicates growth; below 50 signals a decline.

The June index signals a "stable expansion across the manufacturing sector," said Dmitry Fedotkin, an analyst at the bank, according to the statement. "Last month's expansion was driven by a rise in production output and higher levels of new orders."

The expansion of the $521 billion economy is expected to slow to 5.2 percent this year from 7.1 percent in 2004. Russia is seeking to speed up growth to about 7 percent a year with measures that include improving the business climate and winning more investments. Toyota, the world's second-largest automaker by sales, broke ground last month for a St. Petersburg factory.

The Japanese automaker plans to invest $250 million within the next two years and raise investment to up to $1 billion, depending on domestic demand for Toyota cars, Economic Development and Trade Minister German Gref said on June 14.

An increase in June input prices for manufacturers slowed from May, easing over eight consecutive months to its lowest level since October 2002, the bank said in the statement.