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. Last Updated: 07/27/2016

June Brings Drop in Manufacturing Growth

Russian manufacturing growth slowed in June for the first time since February as the pace of output and new orders declined, a gauge of production showed.

VTB Bank Europe's purchasing managers' index declined to 53 from 54.4 in May, when manufacturing expanded at the fastest pace in nine months, the bank said in an e-mailed statement Monday. A figure above 50 indicates growth, below 50 a contraction. The bank surveyed 300 purchasing executives among Russian manufacturers.

"The decline in the headline index primarily reflected weaker gains in new orders, output and manufacturing employment during June," VTB said in the statement.

The pace of new orders growth had the biggest decline since January 2002, driven by a drop in export orders, the statement said. Job creation also expanded at the slowest pace in the past six month.

"Output growth moderated from May's nine-month high in June but was still sharper than at any other period in the first half of 2007," the statement said.

The data suggest that "companies continued to absorb more costs without passing them on to final consumers," Chris Green, senior economist at VTB, said in the statement.