Russia experienced significant growth in its manufacturing industry in March, according to data from a S&P Global purchasing managers' survey. The rate of growth was the rapidest in over seventeen years, driven by an extraordinary rise in client demand.
The Russia Manufacturing Purchasing Managers' Index (PMI) from S&P Global indicates that the industry's growth rose from 54.7 in February to 55.7 in March. A PMI number above 50 suggests expansion in the sector. The manufacturing industry's performance in March was the best since August 2006.
This growth was driven by increases in output and new orders, with the growth of new orders moving at its fastest pace in more than sixteen years. According to manufacturers, new order growth was due to improved demand conditions, successful marketing efforts, and acquiring new clients.
For the first time in five months, there was a rise in new export demand. This was the fastest growth since the previous August and resulted in output growth at the most rapid rate since January 2017.
As production requirements increased, goods producers also increased employment, with job creation occurring at the fastest rate since November 2000.
Although there was a regression in vendor performance and shipping delays, input price inflation in March declined. Selling price inflation also dropped to its lowest point in nine months.
Business confidence among goods producers also grew in March due to strong demand conditions, which in turn increased output expectations.
