Markit: Russia’s Manufacturing PMI rises to 52.4 in October

MOSCOW, Nov 1 (PRIME) -- Russia’s October Manufacturing purchasing managers’ index (PMI) increased to a 4-year record of 52.4 from 51.1 in September, researcher Markit said in a statement seen by PRIME on Tuesday.

“The upturn in Russia’s manufacturing sector shifted into a higher gear during October, as businesses recorded marked increases in production, new orders and outstanding business. Weighing on the improvement in operating conditions were further, albeit slight, job cuts in the sector. Meanwhile, inventories held were reduced at a substantial rate and cost pressures rose,” Markit said quoting its Economist Samuel Agass.

“The trajectory of Russia’s manufacturing upturn shifted higher during October, as the headline PMI reached a 4-year high. The latest figure was indicative of a solid improvement in operating conditions and a clear sign that the sector may finally be making a sustainable recovery.

Goods producers reported substantial increases in output and new orders, although the latter continued to be weighed down by weaker demand from abroad. Encouragingly, production growth looks likely to sustain its current solid pace, as backlogs accumulated at the sharpest rate since August 2006.”

The main negative highlighted by October data is the current trend of job cutting. With signs of capacity pressures in the sector intensifying, workforce numbers should return to growth territory soon, Agass added.

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