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Manufacturing growth in Russia strongest since July 2017

Staff Writer | February 3, 2018
Russian goods producers signalled a solid start to the year, with overall growth in the manufacturing sector picking up to the strongest in six months in January.
Manufacturing in Russia
Russia   IHS Markit Russia Manufacturing PMI
The latest upturn in output accelerated and was supported by strong client demand and a faster rise in new orders.

Meanwhile, new business from abroad returned to growth, following a marginal contraction in December.

Greater global demand for raw materials added pressure to supply chains with vendor performance deteriorating further.

However, input cost and output charge inflation remained subdued in the context of the series history.

The seasonally adjusted IHS Markit Russia Manufacturing Purchasing Managersā€™ IndexTM (PMI ) ā€“ a composite single-figure snapshot of the performance of the manufacturing economy ā€“ posted 52.1 in January, up slightly from 52.0 in December.

The latest PMI figure indicated a solid improvement in operating conditions across the Russian manufacturing sector.

Moreover, overall growth accelerated to the strongest rate in six months.

Production levels at Russian manufacturers increased further in January, with the pace of expansion quickening to the fastest since July 2017.

Anecdotal evidence commonly attributed the rise in output to greater new order volumes and stronger client demand.

New business received by manufacturers expanded strongly at the start of the year, supported by the acquisition of new clients.

In addition, more favourable global demand conditions were reflected in a marginal increase in new export orders.

In line with stronger domestic and foreign demand for materials and parts, supplier delivery times lengthened solidly.

That said, despite ongoing raw material price rises, the rate of input cost inflation softened and remained muted in the context of the series history.

Similarly, increases in factory gate prices were subdued when compared to the series trend. ā–