Page 33 - RUSRptApr17

slowest in eight months.
Despite some anecdotal evidence stating increased orders and demand in April, more respondents signalled no change than in March. New export orders contracted for the forty-fourth month running in April, albeit at a weaker pace than in March.
Output expectations for the next 12 months remained positive but moderated sharply to the least optimistic since January 2016. The Future Output Index posted the largest one-month fall in 28 months. Business confidence was also below the historical series average in April.
Input prices rose at a relatively modest pace in April, albeit the sharpest in five months. Panellists noted that supplier monopolies and higher world prices for commodities and energy contributed to cost inflation. Meanwhile, suppliers’ delivery times deteriorated further.
Output prices rose for the first time in three months, linked to higher raw material costs and market adjustments. That said, the rate of inflation was historically weak.
Buying activity among firms in Russia’s manufacturing sector increased for the ninth month running in April . That said, the pace of purchasing slowed to the weakest in eight months.
The pace of contraction in employment quickened from March, with all three sub-sectors experiencing faster job shedding.
Backlogs contracted for the first time following six months of expansion.
Panellists noted that new orders were being met as soon as they were placed. Downturns in pre- and post-production inventories were also reported.
Commenting on the Russia Manufacturing PMI survey data, Sian Jones, Economist at IHS Markit, which compiles the survey, said: “Following solid growth in the first quarter the April survey data signal a loss of momentum in the Russian manufacturing sector. Growth in both output and new orders were the slowest for eight months. Meanwhile, business confidence softened with output expectations being the weakest since January 2016. That said, inflationary pressures remained historically weak. “IHS Markit forecasts that industrial production will increase by 1.7% in 2017. But the latest official data for March showed weak growth of only 0.8% yearon-year. The latest PMI data suggest that manufacturing will weigh on overall industry growth in the second quarter.”
Services
Growth of Russia’s service sector continued in March, with the rate of expansion improving slightly from February, finishing the strongest quarter since the end of 2012, according to the Services PMI report by Markit published on April 5.
For the services sector in March, “growth was again supported by rising levels of incoming new business, and service providers faced capacity constraints as evidenced by an increase in backlogs of work,” according to the report.
33 RUSSIA Country Report April 2017 www.intellinews.com