Russian Manufacturing Activity Maintains Solid Growth

(RTTNews) - Russia's manufacturing activity logged further solid expansion in March, underpinned by a faster rise in output and continued gains in new orders, the purchasing managers' survey data from S&P Global showed on Monday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, dropped to 53.2 in March from 53.6 in February. However, a reading above 50 indicates expansion in the sector.

Although easing from February, the rate of growth was among the strongest since January 2017, the survey said.

Output growth was the fastest in three months, boosted by greater new orders and strong client demand.

New orders continued to increase in March, though at a slower pace. Nonetheless, the rate of growth was the second-fastest since April 2019. Meanwhile, new export orders contracted at the steepest pace this year so far.

On the price front, input price inflation accelerated to the highest level since May 2022 amid hikes in supplier prices and unfavorable exchange rate movements. Selling prices also increased at the sharpest rate for almost a year.

In line with greater production requirements, Russian manufacturers increased their staffing levels for the fifth straight month. Moreover, the rate of job creation was the strongest since November 2018.

Goods producers expressed strong optimism towards production expectations in the next twelve months amid hopes of further expansion in new order inflows, opportunities for import substitution, investment in product development.