Russian Manufacturing Activity Expands Strongly On Robust Demand

(RTTNews) - Russia's factory activity continued to expand strongly at the start of the year, underpinned by a further rise in production, fewer supply delays along with a faster expansion in new orders, the purchasing managers'survey data from S&P Global showed on Wednesday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, dropped to 52.6 in January from 53.0 in December. However, a reading above 50 indicates expansion in the sector.

New orders grew at the fastest pace since April 2019 amid stronger client demand and the acquisition of new customers. This was more evident in the domestic market, as new export orders contracted for the twelfth successive month. Production also logged a further rise in January, albeit modestly.

On the price front, input price inflation accelerated to a three-month high, linked to higher supplier prices and unfavourable exchange rate movements, which drove a surge in imported goods prices.

Consequently, selling prices rose for the third straight month, though the rate of inflation has eased since December, largely reflecting weak pricing power. Manufacturing employment increased at the steepest rate since February 2011.

The survey also revealed that supplier delivery times continued to lengthen in January, but pressure on supply chains eased.

Looking ahead, the level of optimism regarding output over the coming year was the strongest for almost four years amid hopes of further expansions in new sales.