Page 32 - RPTRusFeb17

manufacturing sector.
While both output and new orders continued to grow, the rate of expansion was the weakest seen since September "reflective of the slowdown in growth of the sector as a whole", according to Markit. New orders from abroad remained muted in February, showing a continuous three-and-a-half year decline.
The rate of job creation in February moderated, with slight expansion of workforce numbers seen by Markit as insufficient to alleviate pressures on operating capacity.
Meanwhile, price pressures continued to recede w ith the rate of input inflation easing to the weakest in four years and manufacturing producers even lowering their own charges for the first time since July 2015.
On the positive side, despite the slowdown in February's growth, manufacturers remained optimistic on output growth in the coming 12 months, with the degree of optimism strengthening to a 21-month high.
The services index also fell. R ussia’s services sector showed a loss of growth momentum in February 2017, indicating slower rates of gains for new business and employment, Markit reported on March 3.
The slip of the indicator is in line with the previously reported moderation of the manufacturing PMI and business confidence, after a strong start of the year in January.
The Markit Russia Services Business Activity Index in February scored 55.5, down from the eight-and-a-half year record of 58.4 seen in January, but still remaining well above the 50.0 no-change mark indicating the increase in sector output.
"Russian private sector growth failed to reach the high standard set at the start of 2017 during February, as shown by the PMI dropping from its long-time high," Markit Senior Economist Paul Smith commented.
The rate of expansion for the private sector overall (manufacturing and services) also moderated with the Composite Output Index sliding to 55.4 in February from January's 58.3.
Despite the decline the output in the services sector still rose at a solid rate, helped by the continuous increase of new orders. Job creation was reported for the second month in a row, although at a slower pace than previously.
Similarly to manufacturing, price pressures in February eased, particularly on the cost side, with the rise in input prices being the slowest in over two-and-a-half years.
As much as the manufacturing producers, Russian service providers also showed positive outlook on the activity in the coming 12 months, with the degree of optimism recorded being the second-strongest since August 2013.
32 RUSSIA Country Report February 2017 www.intellinews.com