Published: December 31, 2023 8:17 am
Author: RT
Manufacturing has surged to its highest level in seven years, according to S&P Global
Data on manufacturing activity in Russia during December has shown the fastest pace of growth in almost seven years, spurring job creation to a three-month high, a survey by S&P Global published this week reveals.
Data based on the Purchasing Managers’ Index (PMI) compiled by S&P Global showed that factory activity in Russia rose to 54.6 in December from 53.8 in November in the highest reading since January 2017. The reading of the index, which reflects manufacturing and services activity, stood well above the mark of 50 which separates expansion from contraction.
The growth in the manufacturing sector has been driven by strong customer demand and increased output, lifted by an inflow of new orders as industry bounces back from the impact of Western sanctions, data showed. The survey linked overall expansion to a growing number of customers, the release of new products and better-quality items on sale.
“Confidence stemmed from planned investment in new products and machinery,” S&P Global said. “The level of positive sentiment was historically elevated despite dropping to a three-month low.”
Despite labor shortages, unemployment in Russia hit a record low of 2.9% in October, the lowest level since the early 1990s, as firms increased staffing numbers in a bid to reduce backlogs of work, the analysis also noted.
READ MORE: Western sanctions haven’t affected Russian aviation safety – Kommersant
According to the survey, Russia’s services sector also expanded in December, driven by new sales as well as stronger domestic and foreign demand.
For more stories on economy & finance visit RT’s business section
