3 Jun 2024 20:51

PMI in Russian manufacturing climbs to 54.4 in May from 54.3 in April - S&P Global

MOSCOW. June 3 (Interfax) - The Purchasing Managers' Index (PMI) for Russia's manufacturing sector rose to 54.4 points in May from 54.3 in April, S&P Global research shows.

The latest data point to a significant improvement in the operating environment in Russia's manufacturing sector.

Index readings above 50.0 points indicate growth in business activity, while those below 50.0 indicate a decline.

Output in the sector grew at a faster pace in May, with manufacturing rising at the second-fastest pace since January 2017. Survey respondents have attributed the rise in output to solid conditions for demand and the dynamics of the indicator for new orders, which, in turn, continued growing at a historically high rate. Increased advertising spending, new customer acquisitions, and solid demand attributed to the jump in new orders. New export orders declined for the sixth time in the past seven months.

Strong customer demand prompted firms to ramp up their hiring efforts. Job creation accelerated to the highest rate in twenty-six-and-a-half years. The number of employees rose on the back of a surge in new orders and a growing backlog of work in progress.

Cost-plus inflation accelerated the sharpest in May since December 2023, as companies reported higher costs for transportation and suppliers, with selling prices also continuing to rise last month, and the rate of inflation for selling prices accelerating the fastest in four months. Purchasing activity by companies to replenish inventories increased sharply.

The indicator for companies' business confidence fell to a nine-month low in May. Nevertheless, the level of optimism among survey participants still signaled historically high expectations for the manufacturing outlook. Positive sentiment was owing to hopes for further acquiring new customers and improving conditions for demand.