Russian PMI Rebounds To 51.5% In January, Further Increases Expected
The Purchasing Managers Index, or PMI, is a simple, composite single-figure snapshot of the performance of the country’s manufacturing economy. A figure below 50 represents retrenchment, above 50, growth. Russia achieved a figure of 51.5% in January, representing some green spring shoots for optimism after the manufacturing sector had been badly hit by the Covid-19 virus during 2020 and winter slow-down conditions for the past four months.
IHS Markit, who compile the Russian PMI data, stated that “Russian manufacturing firms continued to signal a promising start to 2021, as operating conditions improved for the second month running. Output and new order growth accelerated despite difficult external demand conditions. Once again, supply chain disruptions were notably apparent, as lead times lengthened to the greatest extent since May 2020. Supplier shortages and hikes in transportation costs pushed up input prices markedly. Firms were able to respond, however, with the fastest uptick in charges for six years. Business confidence regarding the year ahead also strengthened. Our current forecast expects industrial production to rise 4.1% in 2021, as the sector seeks to recover from the downturn seen in 2020.”
Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at email@example.com for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.