Ukrainian private sector growth picks up as exports drop

Ukrainian private sector growth picks up as exports drop

Smoke billows from a chimney in the city of Omsk

In September, the S&P Global Purchasing Managers' Index PMI rose to 52.0 from 51.7 in the previous month, climbing higher above the 50.0 mark that separates expansion from contraction to its highest point since March 2019.

Client demand was focused on domestic customers, as new export orders declined steeply, S&P Global said in a monthly survey. The loss of customers and the impact of sanctions was a factor in the decrease in foreign client demand. The United States and the European Union promised last week to impose more sanctions on Moscow after Russia staged referendums in four Ukrainian regions and later declared that it was annexing them.

Western governments and Kyiv said the move was a breach of international law.

Employment rose at the fastest rate since January, due to a rise in new order inflows and greater production requirements.

It was not clear how heavily President Vladimir Putin's partial mobilisation order, made on Sept. 21, had weighed on workforce numbers. Hundreds of thousands of men have been drafted into the army or fled abroad since then.

In September, the sentiment about future output rose to its highest since March 2019 as a result of the fact that it rose to its highest since March 2019.

The optimism stemmed from new product development, greater import substitution, and hopes of an increase in client demand, S&P Global said.