Russian Manufacturing Activity Signals Solid Expansion

(RTTNews) - Russia's manufacturing activity continued to expand strongly in April amid robust growth in output and new orders, the purchasing managers' survey data from S&P Global showed on Thursday.

The S&P Global Russia Manufacturing Purchasing Managers' Index, or PMI, dropped to 54.3 in April from 55.7 in March. However, a reading above 50 indicates expansion in the sector.

The latest growth was stronger than the series average despite softening to the slowest in three months, the survey said.

Production increased at the second-fastest rate since January 2017, albeit at a slower pace than it was in March.

New orders grew sharply in April, which was evident in the domestic market as export orders fell amid challenging external demand conditions.

In line with rising new orders, firms raised their workforce numbers in April, though the rate of job creation has eased since March.

On the price front, cost pressures remained sharp in April due to further supplier delivery delays and logistics challenges. The pace of output price inflation was nonetheless the second-slowest since last June.

Looking ahead, Russian manufacturers remained upbeat about output expectations in April, albeit the weakest in three months. Firms' positive outlook was underpinned by the development of new product ranges and hopes of stronger customer demand.