Rus­sian man­u­fac­tur­ing ac­tiv­ity growth slows in De­cem­ber

Business a.m. - - MANUFACTURING - Busi­ness a.m.

RUS­SIAN MA NUFACTURING growth eased in De­cem­ber to the third-high­est rate in 2018, al­though out­put and new busi­ness re­mained strong, the Markit pur­chas­ing man­agers’ in­dex (PMI) showed on Fri­day.

The main PMI in­dex de­clined to 51.7 from 52.6 in Novem­ber, re­main­ing above the 50.0 mark that sep­a­rates ex­pan­sion from con­trac­tion for the third month in a row.

In­fla­tion­ary pres­sure in the sec­tor soft­ened de­spite an ex­pected in­crease in value-added tax next year to 20 per­cent from 18 per­cent.

Pan­elists at­trib­uted a slower rise in out­put prices to higher com­pe­ti­tion, while the rate of in­put prices slowed to a nine-month low.

The mood among man­u­fac­tur­ing com­pa­nies re­mained up­beat, and out­put ex­pec­ta­tions in the sec­tor were at their sec­ond-high­est since May 2013 thanks to client de­mand.

«Ro­bust op­ti­mism stemmed from greater ac­cess to new for­eign mar­kets and a sus­tained rise in new busi­ness, which man­u­fac­tur­ers ex­pect to see con­tin­u­ing through 2019,» said Sian Jones, an econ­o­mist at IHS Markit that com­piles the sur­vey.

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