Russian Manufacturing Sector Expands Most Since Jan 2017

(RTTNews) - Russia's manufacturing activity grew at the quickest pace in more than six-and-a-half years in September, largely led by robust domestic demand, the purchasing managers' survey data from S&P Global showed on Monday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, rose to 54.5 in September from 52.7 in August. A reading above 50 indicates expansion in the sector.

New orders increased sharply in September and at the fastest pace since early 2017 on the back of stronger client demand, new product launches, and successful import substitution.

Meanwhile, new export orders increased at a slower and only marginal pace, weighed by challenging economic conditions in key markets.

The rate of growth in output was the strongest since June, in line with growing new orders.

Manufacturers saw the greatest rate of job creation since November 2000, buoyed by higher expectations for greater output over the upcoming year.

On the price front, input price inflation accelerated to an 18-month high in September, with manufacturers recording a sharper hike in purchase costs as demand often exceeded supply. Selling prices rose at a substantial pace that was the steepest since April 2022.