Russia’s manufacturing activity expanded at the fastest pace in nearly six years in November amid stronger gains in output and new orders, survey data from S&P Global showed on Thursday.
The S&P Global Russia Manufacturing Purchasing Managers’ Index, or PMI, rose to 53.2 in November from 50.7 in October. A reading above 50 indicates expansion in the sector.
The recent expansion accelerated noticeably and was the fastest since January 2017, the survey said.
Output grew at the joint-sharpest rate since March 2019, linked to stronger client demand and increased new order inflows.
The total number of new orders was largely driven by domestic clients as sanctions weighed on foreign client demand.
In line with rising new orders and increased production requirements, firms raised their staffing numbers in November.
Despite rising employment, pressure on capacity was reflected in a renewed increase in backlogs of work.
On the price front, the rate of cost inflation slowed from October amid reports of lower supplier and material prices. Meanwhile, output prices were broadly unchanged in November.
A strong new order growth outlook supported November’s business confidence, as sentiment rose to the second-highest level since April 2019.