Russia: Manufacturing PMI rises to highest level in over a year
December 1, 2014
The Markit HSBC manufacturing Purchasing Managers Index (PMI) jumped from 50.3 in October to 51.7 in November, which marked the highest level since October 2013. As a result, the PMI rose further above the 50-threshold that separates expansion from contraction in business conditions.
According to Markit HSBC, “the Russian manufacturing sector registered stronger growth of output and new orders in November, but inflationary pressures surged as a result of weakening currency.” Accordingly, following the positive trend that began in July of this year, new orders and suppliers’ delivery times have continued to contribute positively to the overall improvement, which offset negative developments in employment and stock of purchases. Moreover, HSBC noted that survey respondents pointed out that the weaker exchange rate was the key factor behind the increase in input prices in November. Input prices jumped to the highest level since October 1998.
Author: Ricardo Aceves, Senior Economist