Activity manufacturing sector grew in January

Moscow, February 3 – “News.Economy.” The purchasing managers ‘ index (PMI) of manufacturing industries of Russia in January rose to 47.9 points from 47.5 points in December, said Markit, which calculates PMIS for different countries.

Photo: TASS

a reading above 50 indicates growth in economic activity, lower – its decline.

the Rate of decline slowed to the weakest since last August. Partly the reason for slower deterioration in business conditions has been to slow the decline in production, which was only a modest and minimum five months.

Manufacturing industries of Russia once again pointed to a weakening in business conditions in January, mainly reflecting a further decline in production and new orders.

the continued weakness of demand also caused a further drop in employment. However, it should be noted that the rate of decline of output, new orders and employment slowed to its lowest level in five months.

as a result, business expectations increased to a significant level. At the same time, price pressures have softened and remained historically muted.

However, the growth rate of prices for manufactured products was slightly faster.

ZANYATOSTI January, the Russian manufacturers continued to cut jobs, but the rate of contraction was only slight.

study Participants were again attributed the fall to lower production needs. At the same time there was another, and backlogs, the pace of which has accelerated amid falling production loads.

Zakazam not least, the company still emphasized that the decline in production was due to weak demand and purchasing power. Meanwhile, new orders in January continued to fall significant pace.

the Decline in new orders was usually attributable to a lower domestic and external demand of the customers. Moreover, the fall in export orders for the ninth consecutive month and was stable.

However, the overall reduction rate has slowed even more with the recent October high. In contrast, business confidence increased at the start of 2020, when the producers showed a higher level of positive sentiment concerning the prospects for production in the next 12 months.

the Degree of positive sentiment reached a five-month high, as companies plan to launch new products and hope for demand growth. As for prices, the cost of production in January grew at historically low rates.

Anycompany noted that slower price growth for raw materials has been associated with the negotiation processes with suppliers amid a further decline in consumer activity.

meanwhile, output prices continued to grow, albeit at a negligible rate. According to reports, the company used a current stock of finished products and raw materials to meet production needs.

Therefore, the level of reserves continued to fall. Although purchasing activity fell, the delivery time is more longer in the background of logistical problems from suppliers. Text: News.Economy