Russian manufacturers end 2012 on minor note - HSBC
MOSCOW. Dec 27 (Interfax) - Russian manufacturers ended 2012 on a minor note, the results of HSBC's December survey show.
The survey's main figure, the HSBC Purchasing Managers' Index (PMI), which is intended to provide a picture of the operating conditions in the manufacturing sector, dropped to the critical figure of 50 in December, thus ending a 14-month period of expansion. The drop from November's 52.2 points was one of the steepest reported in the past four years.
The bank said the Russian manufacturing PMI slid as growth of new orders slowed in December amid weaker exports, which led to virtual stagnation of production, while the drop in the number of employees at companies was the biggest in three years.
"Stabilization, not stagnation - this is how we interpret the results" of the December PMI for Russia's manufacturing sectors, HSBC's chief economist for Russia and the CIS, Alexander Morozov said. Interestingly, overproduction was mentioned by respondents as a factor that led to slower growth of production in December. Therefore, manufacturers were adjusting for the more modest rates of economic growth expected ahead, Morozov said.
However, HSBC expects moderate growth in Russia's manufacturing sector to resume soon as it estimates moderate stock levels in the sector, Morozov said.
Purchase price inflation in Russia's manufacturing sector was only slightly changed in December, primarily amid growth of labor costs. The same trend was seen in factory gate prices, the growth of which remained muted and unchanged since November.