Russia: Goods producers maintain solid growth in March
April 3, 2017
Business activity in Russia’s manufacturing sector continued to grow in March, showing little change from February’s developments. The Manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit inched down from 52.5 in February to 52.4 in March. The fact that the PMI declined but remained above the 50-threshold that separates expansion from contraction in the sector indicates that manufacturing activity continued to expand, although at a slightly slower pace.
According to IHS Markit, March’s result reflected further growth in manufacturing output and new orders, while the level of employment decreased compared to the previous month. In addition, new export orders also fell. IHS Markit signaled that the average PMI in Q1 was the same as that for Q4 2016, which together represent the strongest growth rates since Q1 2011.
In terms of price developments, respondents pointed out that input prices increased in March, mainly due to reduced stocks and higher commodity prices. Conversely, Russian goods producers stated that output prices fell for a second consecutive month in March.
Author: Ricardo Aceves, Senior Economist