The PMI index of manufacturing industries in the Russian Federation in February became the highest since 2017

The rating agency S&P Global set the February business activity index (PMI) for the manufacturing sectors of the Russian economy at 54.7 points (.pdf). In January this index was appreciated at 52.4 points.

An indicator value of more than 50 points indicates an increase in business activity. A reading below this level indicates a decline in business activity.

According to the agency’s estimates, the goods manufacturing sector demonstrated its best growth performance in the last 13 years, equaling the January 2017 figure.

The Russian economy is experiencing an increase in the number of new orders – the pace of their growth has become the fastest since March 2011. The increase in sales, notes S&P Global in an explanatory note, was associated with increased customer demand and the introduction of new products. Overall production growth was the strongest since March 2019.

However, S&P Global notes that there are still problems with the supply chain. “Price competition led to the slowest growth in selling prices for eight months,” agency analysts note.

In January, the PMI index, on the contrary, dropped to 52.4 points from 54.6 in December 2023. At the same time, in December, the growth rate of business activity in manufacturing industries was at the highest level in seven years.

Anastasia Larina