VTB Capital has released the results of its July Purchasing Managers Index showing the seventh successive month of expansion and marking the highest growth since April 2008.

July’s PMI index came in at 52.7, little changed from June’s 52.6, but favorably compared with its long – run trend of 52.1.

VTB Capital economist Dmitry Fedotkin said the figures indicated a faster growth of new orders, resumption of employment growth and easing inflationary pressure, which was partially offset by the falling new exports component.

“In July, the Russian Manufacturing PMI increased only marginally, to 52.7 (from 52.6 in June), suggesting that the pace of expansion was sustained in the manufacturing sector. Although the output sub-index eased to 55.3, the new orders growth sub-index rose to 54.6, despite the new exports sub-index slipping into the red (48.3) as demand for Russian products fell. On a more positive note, the employment sub-index bounced back above the no-change 50 level to 50.8, while inflationary pressures moderated with both input and output prices sub-indices declining for the second month in a row (to 63.7 and 54.9, respectively). Respondents once again cited commodity prices as the key inflationary drivers.”