Russian manufacturing contracts slightly as job cuts hit fastest since May, PMI shows

MOSCOW, Oct 1 (Reuters) - Russia's manufacturing sector contracted slightly in September as weak demand drove further declines in output and new orders, a business survey showed on Thursday.

• The seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in September from 48.8 in August, a survey by S&P Global showed. The 50-mark separates growth from contraction.

• Output fell for a second straight month, though the pace of decline eased from August as firms linked lower production to weak demand and softer new order inflows.

• Total new orders also fell for a second month running, with companies citing higher prices and competition. Export orders dropped for an 11th consecutive month and at the sharpest pace since May 2022.

• Employment declined for a 10th straight month, with the pace of job shedding the fastest since May. Firms often linked lower headcounts to the non-replacement of voluntary leavers.

• Cost pressures remained marked but eased to a three-month low, while output price inflation slowed to the weakest since June. Supplier delivery times lengthened to the greatest extent since October 2024 amid transportation delays and logistics issues.

• Manufacturers were more upbeat about the year-ahead outlook, with optimism rising to a three-month high on hopes of stronger demand and new customers, although confidence remained below the series average.

(Reporting by Gleb Bryanski; Editing by Toby Chopra)