September survey data signalled a further improvement in operating conditions in the Russian manufacturing sector.
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The overall growth performance was driven by solid expansions in output and new orders, and the first increase in exports since August 2013.
The sustained upturn in production was also a key factor behind the return of job creation, with staffing levels rising for the first time in seven months.
Meanwhile, the survey showed faster increases in both input and output prices.
The seasonally adjusted IHS Markit Russia Manufacturing Purchasing Managers’ IndexTM (PMI) – a composite single-figure snapshot of the performance of the manufacturing economy – posted 51.9 in September, up slightly from August’s reading of 51.6.
Survey data for the third quarter as a whole signalled moderate growth in the manufacturing sector, and at a stronger rate than was seen in the second quarter.
Production levels increased further across the Russian manufacturing sector in September.
Although slightly weaker than August, the growth rate was in line with the long-run series average.
Panellists noted that the upturn was due to strong client demand and a corresponding rise in new orders.
New orders received by manufacturing firms continued to rise in September, growing at a solid rate that was in line with that seen in August.
Anecdotal evidence linked the increase in new business to larger order volumes from new and existing clients.
Notably, new export orders grew for the first time since August 2013, albeit only fractionally.
Goods producers reported a steep rise in cost burdens.
The pace of input price inflation accelerated to reach a ten-month high, with panellists stating that average prices were driven up by higher raw material costs and supplier shortages.
This was further evidenced by vendor performance, which continued to deteriorate.
Similarly, average charges increased to reflect larger cost burdens.
Furthermore, output price inflation was the fastest in 2017 so far. ■