The purchasing managers ‘ index (PMI) in the manufacturing industries of Russia in June 2016 rose to 51.5 vs 49.6 points in may, according to Markit.
The rise of the PMI index above 50 points indicates expansion in the economy, and this means that the growth of business activity in the Russian industry has resumed after a six-month recession. Recorded at the end of June, the index rose above 50 points for the first time from November 2015 and was the largest since November 2014.
In the message Markit noted that the revival of growth has occurred against a significant increase in production volumes, which was the highest in 19 months, and the highest in almost two years growth in new orders. Simultaneously, it was recorded a slight increase in the number of jobs.
“Russian producers had the opportunity to experience the most successful month for almost a period of two years in June, against the advanced growth of production volumes, new orders and employment. It is encouraging that the manufacturers seem to intend to increase production volumes. the manufacturing sector is perhaps ready for a higher level of growth in the second half of 2016,” — said Markit economist Samuel Agassi.
Negative experts have called the fact that Russian companies managed to increase the number of orders on the domestic market. Export orders declining for 34 consecutive months, although the decline in June was the lowest in all these years.
Simultaneously reduced the volume of previously adopted but uncompleted orders (the fall continued for 28 consecutive months), as well as the stocks of finished products (26 months). The rate of contraction in stocks of finished goods rose to its highest in five months. At the same time, enterprises are rapidly (to a maximum of three years) increased purchases of raw materials.
“However, this addition did not prevent a further reduction in stocks of raw materials. Price pressures in the Russian manufacturing sector continued to grow in June as the purchasing and selling prices increased. Study participants reported that the rising prices of raw materials influenced the increase in production costs,” the report says Markit.
The PMI is based on a survey of managers of leading companies, their assessment of the current situation in the economy and the prospects of the business. If the index grows above 50, it indicates growth, below — its decline.