(Reuters) – Activity in Russian manufacturing grew at its fastest pace in more than six years in September, a survey showed on Monday, while employment in the sector rose at its quickest rate in over two decades.
The S&P Global Purchasing Managers’ Index (PMI) for manufacturing rose to 54.5 from 52.7 in August, moving further above the 50 mark that separates expansion from contraction. It was the highest reading since January 2017.
“Stronger client demand, new product launches and successful import substitution reportedly drove the upturn,” S&P Global said in a statement. “The acceleration in growth was led by domestic demand, as new export orders increased at a slower and only marginal pace.
The sector’s growth in the more than 19 months since Russia’s full-scale invasion of Ukraine began has been largely predicated on domestic demand.
“Challenging economic conditions in key markets were noted as weighing on the rise in sales from abroad, S&P Global said.
Companies also noted that unfavourable exchange rate movements pushed up the price of imported goods, S&P Global said, but expectations of future output improved compared with August on hopes of stronger client demand and successful import substitution.
“A greater inflow of new work led firms to expand production capacity in September,” S&P Global said. “Buoyed by stronger expectations of increased output over the next year, manufacturers registered the sharpest rate of job creation since November 2000.”
(Reporting by Alexander Marrow; Editing by Hugh Lawson)
