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Russia's manufacturing activity continues to grow

posted onDecember 1, 2021

Russia's manufacturing PMI edged up to 51.7 in November  from 51.6 in October, seeing the strongest growth for six months.

November also marked the second straight month of expansion in the manufacturing sector amid a faster rise in new orders. 

“Russian manufacturers registered a further marginal improvement in the health of the sector, according to November PMI data. Overall growth was supported by faster upturns in production and new orders, with stronger client demand also driving the steepest rise in employment since late-2018,” IHS Markit said in a note.

Employment increased to the steepest pace since December 2018, with backlogs of work falling at a solid pace.

“Greater staffing numbers allowed manufacturers to process new sales in a timely manner, with backlogs of work falling at a quicker pace. In line with greater customer demand, firms' expectations regarding the outlook for output over the coming year were revised upwards to their strongest since June,” Markit added.

On the price front, cost inflation accelerated to a four-month high for manufacturers due to a rise in supplier prices and raw material shortages. Firms said they had partially passed on greater cost burdens to clients.

Russia Manufacturing

(Source: IHS Markit)

Business confidence across the Russian manufacturing sector reached a five-month high as producers hoped for an uptick in customer orders. 

The IHS Markit Russia Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 300 manufacturing companies. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change. 

London-headquartered and NYSE-listed IHS Markit is a world leader in critical information, analytics and expertise to forge solutions for the major industries and markets that drive economies worldwide.

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