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Operating conditions in Russia's manufacturing sector deteriorate further

Staff writer ▼ | March 2, 2016
Russian manufacturers reported a further deterioration in operating conditions during February, the third in as many months. Job cuts were evident amid a sharp fall in backlogs of work.
Russia manufacturing
Russian economy   Markit Russia Manufacturing PMI
However, production remained broadly unchanged as a slight rise in new orders was reported. Meanwhile, price pressures remained evident, as both output charges and input costs rose. The seasonally adjusted Markit Russia Purchasing Managers' Index (PMI) – a single-figure snapshot of the performance of the manufacturing economy – posted 49.3 in February.

Down from 49.8 in January, the latest figure signalled a sustained downturn in the manufacturing sector of Russia. Moreover, a decline in operating conditions has been reported in each of the past three survey periods.

Output levels in the manufacturing sector of Russia were broadly unchanged during February, giving firms the opportunity to work through their outstanding business levels. The rate at which backlogs of work was depleted was sharp despite easing since January. Moreover, falling work-inhand has been reported in every survey since March 2013.

Russian goods producers recorded a slight expansion in new business volumes during February. According to anecdotal evidence, a higher volume of new work reflected the development of new products.

However, the rise in new orders was driven by the domestic market, as new export orders declined further. The rate of contraction accelerated to the sharpest in 19 months and was marked overall.