Page 53 - RusRPTFeb24

seeing contractions.
Stronger than the series average, the rate of growth eased again as the Russian economy starts to cool after a strong 2023 and the structural problems, like high inflation, start to make themselves felt.
The expansion in January was the third month of slowing expansion since last July. Nevertheless, new orders received by manufacturers expanded at a solid pace in the month, as firms noted a sustained uptick in demand conditions and the acquisition of new customers.
w
The Russian manufacturing sector continued to expand in December 2023, showing the strongest improvement rate in almost seven years, according to the latest PMI report from S&P Global. At the same time Services PMI also remained in the growth territory in the reporting month. (chart)
As followed by bne IntelliNews, despite the fallout from Russia's full-scale military invasion of Ukraine, the manufacturing sector ended 2022 with a historically strong expansion in output. Manufacturing PMI since January 2023 continued to trend in positive territory.
The seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) posted 54.6 in December, up from 53.8 in November and above the 50.0 no-change mark to signal a “solid improvement in the health of the manufacturing sector” and showing the strongest rate of growth was since January 2017.
The seasonally adjusted S&P Global Russia Services PMI Business Activity Index registered 56.2 in December, up notably from 52.2 in November. The rise in service activity was “steep overall and accelerated to the sharpest since August”, according to the report.
As a result, The S&P Global Russia Composite PMI Output Index (both services and manufacturing) posted 55.7 points in December, up from 52.4 in November, to signal the sharpest expansion in business activity for four months.
In Manufacturing, sustained improvements in output and new order growth supported the sector. “A further sharp rise in new sales spurred firms to expand input buying and employment at increased rates, as optimism in future output was buoyed by a sustained rise in client demand,” S&P wrote. Greater client demand continued to be largely focused on the domestic market.
53 RUSSIA Country Report February 2024 www.intellinews.com