Page 31 - RPTRusFeb17

January, and declined further to about 4.7% y/y by mid-February, based on latest weekly inflation data .
4.3 Industrial sectors and trade
In 2015, the volume of manufacturing output fell 5.4%. Last year, the output was virtually unchanged from 2015. Credit for ending the overall decline goes to 5–6% gains in output in the sizeable chemical branch and a couple of% gain in the large food industry. The smaller rubber and plastics branch, a boom industry, also returned to growth. Growth of machinery & equipment output ended years of decline (thanks to two sub-branches), and output rose in forest industries. Manufacturing was pulled down mainly by three branches. Production of oil products fell after many years of growth, while the metal and construction material industries experienced their second year of decline in a row. Production of electrical machinery & equipment, as well as transport vehicles, continued to contract.
Output of various Russian manufacturing branches, 2008–2016
4.3.1 Producers PMI
After posting record-high numbers in December and January, both Russia's Manufacturing and Services Purchasing Managers Index (PMI) slipped in February, according to the March 1 report by Markit.
Growth in both output and new orders moderated in February, and although the expansion remained solid, this puts into question the strong start of 2017 for Russia's industry.
"Latest PMI figures signaled a loss of momentum," Senior Economist at Markit Paul Smith commented on the report, while noting that the sector is in good health as business conditions remain above the historic averages and outlook is the brightest since May 2015.
The PMI in the reporting month declined from January's near six-year high of 54.7 to 52.5, lowest in the four months, but still above the 50.0 no-change mark indicating to the improvement of the business conditions in the
31 RUSSIA Country Report February 2017 www.intellinews.com