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. Last Updated: 07/27/2016

PMI Shows Growth in February

PMI Index
December 50.4
September 51.1
August 52.6
Source: Moscow Narodny Bank
The manufacturing sector firmed in February, led by rising production and new order-book growth but falls in employment and stockpiles kept the expansion subdued, Moscow Narodny Bank said Monday.

The Manufacturing Purchasing Managers' Index (PMI), based on a poll of 300 Russian purchasing managers, rose to 50.3 in January from 49.1 in January, when the sector's growth faltered for the first time in more than four years.

The index is designed to give a snapshot of manufacturing conditions. A reading above 50, considered a no-change mark, indicates growth.

The bank attributed the February rise to new order growth that rose at its fastest pace since October. The survey also showed an increase in export orders despite fragile demand in many key European export markets.

As order levels picked up, firms responded by increasing production.

"Although month-on-month growth was soft compared to the robust rates seen during the middle of last year, output levels increased at a reasonable rate and improved on the marginal pace seen in January, which was the weakest for 51 months," the bank said.

The survey showed further manufacturing job losses in February with the latest round linked mostly to restructuring programs designed to lower costs and boost productivity.

The bank noted that input price inflation rose at its fastest rate for 27 months in February, fuelled by rising energy prices.