Russia: Manufacturing PMI jumps to near two-year high in February
The IHS Markit Russia Manufacturing PMI rose to 51.5 in February, from 50.9 in January, marking the best reading since April 2019. As a result, the index edged further above the critical 50-threshold, signaling a sturdier improvement in operating conditions across the Russian manufacturing sector.
February’s upturn was led by accelerating output and new orders growth. Production expanded at the fastest pace since August, chiefly thanks to stronger client demand at home, which more than offset the continued contraction in new export orders. On top of that, employment levels rose at the strongest pace in over two years in February, backlogs of work fell at a softer rate, while inventories continued to dwindle, thus further buoying the overall reading.
With regards to prices, supplier shortages and hikes in transportation costs pushed the input cost inflation to one of the highest levels since 2015. In response, manufacturers passed onto higher costs to consumer through a marked rise in output charges. Lastly, business sentiment jumped to an over one-year high on hopes of an end to the Covid-19 pandemic.