According to S&P Global, Russia's manufacturing sector experienced its fastest expansion in more than seven years in February due to a significant increase in new orders and output.
The S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) climbed to 54.7 in February, up from 52.4 in January. Any score above 50 signifies growth within the sector. This marks the best performance for Russian manufacturing since January 2017, tying its strongest level in almost 13 years.
New orders received by Russian manufacturers have skyrocketed at the fastest rate since March 2011, thanks to heightened customer demand, the launch of new product lines, and effective sales strategies. However, the demand for new exports dipped at the fastest rate in nearly a year.
Despite this, manufacturing output remained strong in February, hitting a high not reached since March 2019 which prompted firms to increase their employment levels.
On the matter of prices, input costs rose rapidly in February due to higher costs of transportation, suppliers, and raw materials. Nevertheless, manufacturers have increased their selling prices at a milder rate.
Russian manufacturers reported a lack of raw materials as supplier performance continues to descent.
For the future, firms are optimistic about expected output over the coming year. Confidence is at its highest in seven months, fuelled by plans for investment in new machinery and hopes for further expansions in new orders.
