Russia's manufacturing Purchasing Managers' Index (PMI) showed accelerated growth in November, while both output and new orders for Russian manufacturing producers expanding at solid rate, according to the IHS Markit report, published on December 1.
Russia's ongoing economic recovery is still uneven, at least on the output side, with most hopes placed on consumption reaching the ambitious goal of over 2% short-term GDP growth.
Previously October was marked by weaker PMI reading and slowdown of industrial output, followed by the publication of disappointing third-quarter GDP numbers.
Nevertheless, in November Markit Russia Manufacturing Purchasing Managers’ Index posted 51.5, up slightly from September’s 51.2, and still above the no-change mark of 50.0 indicating expansion in the sector.
The latest index reading showed a moderate and faster expansion in the manufacturing sector that was broadly in line with the long-run series average, according to the report.
“November survey data signalled a modest upturn in the manufacturing sector and a further improvement in operating conditions," Markit economist Sian Jones commented.
"However, IHS Markit currently forecasts industrial production to rise by 1.7% in 2017, a figure which has been revised down following muted growth across several industries," he added.
In November panellists linked the rise in production to stronger client demand and greater order volumes, although the increase was weaker than the long-run series average.
Increase in new orders was also linked to stronger domestic client demand, while export order growth softened from October to a fractional rate which was the weakest in the current three-month sequence of expansion.
While the output expectations "remained robust in November," the business confidence in the manufacturing sector eased to the weakest in three months in November. Anecdotal evidence linked confidence to stronger client demand and new product development, according to Markit.