June 3 (Bloomberg) -- Russian manufacturing weakened for a third month in May as output growth slowed and companies cut jobs, according to HSBC Holdings Plc.
The HSBC Purchasing Manager’s Index fell to 50.4 last month from 50.6 in April, HSBC said in an e-mailed statement, citing data compiled by London-based Markit Economics. That matched the median estimate in a Bloomberg survey of six economists. Readings above 50 indicate expansion.
Stagnant manufacturing suggests sluggish growth is extending into the second quarter after the economy of the world’s biggest energy exporter expanded in the first three months at the weakest pace since a contraction ended in 2009. The figures add to April data showing industrial-output growth slowed and retail sales rose less than economists estimated as a recession deepened in Europe, Russia’s biggest trading partner.
“Manufacturing has continued gradually losing growth momentum,” Alexander Morozov, chief economist for Russia at HSBC in Moscow, said in the statement. “Intakes of new orders were getting weaker, laying down the ground for preservation of conservative business expectations and restrained output growth.”
The Micex Index of 50 stocks fell 1.5 percent to 1,329.62 as of 10:14 a.m. in Moscow. A close at that level would be the weakest since June 6, 2012. The ruble weakened for a sixth day against the dollar, tumbling 0.3 percent to 32.0450.
Manufacturers cut jobs in Russia for a seventh month, as output growth slowed to a “fractional rate” in May, according to HSBC.
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