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Russian manufacturing growth accelerates further at the start of 2017

Staff Writer | February 2, 2017
Russia’s manufacturing sector shifted into a higher gear at the beginning of 2017.
Russian manufacturing
Russia   Markit Russia Manufacturing PMI
A sharp increase in new orders was reflected in goods producers raising their output to the greatest extent for almost six years. Subsequently, backlogs rose at the fastest pace since August 2006, leading firms to add to their headcounts at a historically strong rate.

Meanwhile, both output and input prices rose at slower rates. The seasonally adjusted Markit Russia Manufacturing Purchasing Managers’ Index (PMI) hit a 70-month high of 54.7 in the opening month of 2017.

Up from 53.7 in December, the latest figure pointed to a strong improvement in the health of Russia’s manufacturing sector and extended the current sequence of growth to six months. Stronger demand for Russian manufactured goods was reflected in the sharpest uptick in new work for almost six years.

The rate of growth outstripped the historical average and was substantial. Conversely, firms recorded a fall in their new export business, lengthening the current downturn to almost threeand-a-half years.

Faced with higher new orders, goods producers operating in Russia registered a further build-up of backlogs of work. Moreover, the rate of accumulation was the quickest in almost ten-and-ahalf years.

Greater workloads encouraged manufacturers to add to their workforce numbers for a second successive month and at the fastest rate since March 2011.