The Russian manufacturing sector continued with its upturn for the second straight month in September. The seasonally adjusted Markit Russia manufacturing PMI rose from 50.8 in August to 51.1 in September, the highest for three months and indicative of a slight upturn in goods producing sector.
The growth was mainly due to the sharpest rise in production for 22 months at Russia’s manufacturing firms. Even if the pace of output growth was strong, it was widely consistent with the long-run historical average. Furthermore, companies have now increased their production in each of the past five months, noted Markit.
Solid underlying demand for Russian goods mainly drove the rise in output. This was hinted by a further strong rise in new business intakes. Furthermore, the growth in new orders was the most marked since June, with panellists attributing this to the introduction of new products. But, demand mainly came from the domestic market as new export orders shrank again. That pace at which new business from foreign clients dropped was significant and accelerated to the most severe since July 2014, said Markit.
In spite of new order books, companies continued to lower their employee figures in September. Job loss continued for three straight months. In the meantime, levels of outstanding business in Russia’s goods producing sector remained quite stable in the month.
Meanwhile, manufacturers in Russia increased their output charges in September. In spite of the pace of rise accelerated since August, it continued to stay subdued. The goods production sector’s inventory levels dropped in September as both input stocks and post-production inventories dropped. In the meantime, companies increased their purchasing activity for the second straight month.