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Upturn in Russia’s manufacturing sector recorded

Staff writer ▼ | July 4, 2016
PMI survey data for June signalled a return to growth territory for Russia’s manufacturing sector.
Russia’s manufacturing
Russian economy   Markit Russia Manufacturing PMI
The upturn was primarily driven by solid expansions in output and new order intakes, while workforce numbers rose, albeit at a soft pace. Buying activity increased at the sharpest pace for three years, occurring despite input price inflation accelerating to a substantial pace.

The seasonally adjusted Markit Russia Purchasing Managers’ Index (PMI) posted above the all-important 50.0 nochange mark in June. At 51.5, the latest figure was up from May’s 49.6 and the highest since November 2014.

Behind the upturn was a solid expansion in Russian manufacturing production. The rise was the fastest for 19 months, although still remained slightly weaker than the historical average. Additional workers were also hired, the second time this has been the case in as many months. The rate of job creation was little-changed from May and was only slight overall.

Driving output was the quickest increase in new order intakes for nearly two years. The return to growth ended a three-month period of declining new orders.

However, the rise in total business was limited to the domestic market only as international demand for Russian goods faded further. A lower volume of new export orders has been registered in each of the past 34 months, althought the latest contraction was the softest during this time.