The index of business activity (PMI) of manufacturing industries in Russia in May rose to 51.9 points, follows from a study by the analytical agency IHS Markit (.pdf). In April, it was at the level of 50.4 points. A value of the index above 50 points indicates growth, below this mark – a slowdown. The improvement in the business environment in May was the highest since March 2019.
“The seasonally adjusted IHS Markit PMI of the manufacturing industries in Russia, which tracks the overall market conditions, was 51.9 points in May, exceeding the April figure of 50.4. The improvement in the business environment in the Russian manufacturing sector as a whole was modest, but the sharpest in the last two years, ”the report says.
The agency notes that production growth accelerated in May, as the pace increased to its highest since September 2020. The increase in production is due to an increase in the number of new orders and stronger customer demand. Several companies also reported that overall sales supported renewed growth in new export orders.
The report cites a significant deterioration in supplier performance in May. “The lengthening of delivery times was most noticeable in a year against the backdrop of a shortage of suppliers and delays in transportation. As a result, prices for production resources grew at a noticeable pace, and the overwhelming majority of companies attributed this to a lack of resources, ”the document says. At the same time, employment in May grew at the fastest pace since December 2018. Companies have tried to increase employment due to increased production needs.