The business activity index (PMI) of Russia’s manufacturing industries rose to 54.4 points in May (54.3 points in April), according to a report by S&P Global. The agency’s report notes that the growth of the index indicates a “sharp” improvement in the state of the Russian manufacturing sector.
A PMI value above 50 points indicates an increase in economic activity, below it indicates a decline.
The S&P Global report says that production growth accelerated in May and almost broke records for January 2017 results. According to analysts, the increase in production is associated with steady demand and a monthly increase in sales.
The increase in new orders at S&P Global was explained by increased advertising costs, attracting new customers and steady demand. In May, the number of export orders decreased for the sixth time in a row, but in the past months, the rate of decline turned out to be insignificant.
As noted by S&P Global, the sharp growth of new business forced companies to expand capacity, and the pace of job creation accelerated to the highest pace since September 1997.
