At the end of November 2016, the purchasing managers ‘ index (PMI) in the manufacturing sector reached the level of 53.6 points, which became the new maximum of 68 months, according to analysts at Markit.
The PMI index rising for the fourth month in a row, confidently holding above the critical level (50 points), above which indicates growth in business activity. Significant are the growth rates: if in September the increase was only 0.3 points in November to 1.2 points.
“The strengthening of industrial sector of Russia is becoming more confident as you get closer to the end of 2016. Closer to December, the manufacturing sector is on the way to the most successful quarter in almost six years,” said economist at Markit Samuel Agassi.
In the message, Markit highlighted that in November, 2016, on stronger demand for domestic products growth of production volumes in industry has accelerated to the highest since March 2011, and the growth rate was above the average historical level.
Simultaneously, experts Markit recorded another increase in new orders (the growth rate was the biggest since January 2013), backlog of orders (up to August 2006) and the purchasing activity of the enterprises of manufacturing industries.
“Support growth in the sector has had a growing domestic demand for Russian goods, which, in turn, has led to a significant increase in production volumes. Price pressure on the company was quite weak, which resulted in a significant increase procurement activity with the aim of strengthening this growth,” explained Agassi.
An alarming signal was the new reduction in the number of jobs, which continues in the sphere of processing industries for five months in a row. However, in November the rate of job shedding slowed to the minimum.
Previously Rosstat reported that the situation in Russian industry has improved significantly since the beginning of the cold season. In October, the monthly decline in industrial production (excluding seasonal and calendar factors) was replaced by growth from minus 0.3% in September to plus 0.3%. In annual terms, the decline, the pace of which in September reached their highest level since the beginning of the year (-0.8%), in October slowed down significantly (to minus 0.2%).
In January—October, 2016 the index of industrial production increased by 0.3%.