The growth rate of activity in the manufacturing industries of the Russian Federation is the highest in seven years

The Russian manufacturing business activity index (PMI) increased from 53.8 in November to 54.6 in December. The growth rate was the fastest since January 2023, according to a study by S&P Global (.pdf).

Analysts note that raw material costs continued to rise in December. This was due to increased prices from suppliers and fluctuations in the exchange rate of the national currency, the study says.

December data, as indicated in the material, signaled an increase in employment among goods manufacturers. The rise in new orders has prompted firms to increase their workforce. The pace of job creation accelerated to its fastest in three months. “The rate of inflation slowed to its lowest level in six months, selling prices were similar to those observed in November, they remained historically elevated and are being passed on to consumers,” the material notes.

The S&P Global study also states that activity in the service sector is growing at the fastest pace in Russia. The industry PMI rose from 52.2 in November to 56.2 in December.

Russian President Vladimir Putin in August 2023 saidthat the preservation of employment and rising wages in the manufacturing industry indicates the development of industry in the country. Russian Deputy Prime Minister Denis Manturov also stated that the level of business activity in this area has reached a record level since 2017.

Read more in the publication “Kommersant” “A bit of a relaxed finish”.

Petr Buzlaev