In January, Russia's manufacturing sector experienced its most rapid growth in six months, driven by significant increases in production and new orders, thanks to robust domestic demand, as reported by S&P Global on Monday.
The Manufacturing Purchasing Managers' Index (PMI) rose to 53.1 in January from 50.8 in December, with values above 50 signaling expansion.
Production expanded at its fastest rate since June 2024, fueled by improved demand conditions and a notable rise in new orders, marking the most significant increase in seven months.
While domestic demand remained strong at the beginning of the year, export orders declined for the first time in six months.
In terms of pricing, input price inflation eased to a three-month low but stayed high in January due to increased costs for suppliers, materials, fuel, and transportation. Conversely, inflation in selling prices accelerated to the second-fastest rate since October 2023.
The surge in new orders led companies to modestly increase their workforce, although the rate of employment growth remained slight.
Challenges within supply chains continued to affect the Russian manufacturing sector, with logistics and transportation delays extending lead times further. Despite these disruptions, inventory levels of purchases rose due to increased buying of inputs to secure safety stocks.
Looking forward, manufacturers' business confidence improved in January, driven by plans for investment in new machinery, product development, and optimism for increased customer demand.
