Russia: Manufacturing sector continues to improve; services sector again moderates in January
Business conditions in Russia’s manufacturing sector continued to improve in January. The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose slightly from 52.0 in December to 52.1 in January, a six-month high. As a result, the PMI lies slightly further above the 50-threshold that separates expansion from contraction in business activity in the sector.
According to IHS Markit, strong growth in output was attributable to a faster rise in new orders, thanks to a slight increase in new business from abroad and new client demand. Meanwhile, employment levels fell in January, albeit marginally, and inflationary pressures remained historically low.
In contrast, activity in the services sector moderated. The Services Business Activity Index produced by IHS Markit eased from 56.8 in December to 55.1 in January. Despite the index dropping to a three-month low, the indicator remains firmly in expansionary territory.