Russia’s manufacturing growth in August was “sluggish” and remained below 50 on the HSBC Purchasing Managers’ Index, indicating a contraction.

The index rose last month to a seasonally adjusted 49.9 from 49.8 in July, HSBC Holdings Plc (HSBA) said in a report today, citing data compiled by London-based Markit Economics.

“Though marginal, the latest contraction was the third in the past four months”, HSBC said. The bank added that the data “signalled a further moderation in input price inflation.”

The rate of inflation has weakened continuously since February, reaching a 25-month low in the latest period and the findings suggest a further drop in new business, the bank said.

“Overall, the Russian manufacturing sector appears to be aligned with a global trend of weak manufacturing and industrial growth in recent months,” Alexander Morozov, HSBC’s chief economist for Russia and the Commonwealth of Independent States, said in the statement.