Business activity in the Russian industry is accelerating the second month in a row. The PMI earning their branches of HSBC rose in October to 52.9 points. This is evidenced by the study Markit.
In September the index stood at 52.4 points. Growth in new orders and output in the manufacturing sector was the highest for a half year. A reading above 50 points indicates an increase in activity. The growth index comes amid slowing growth in employment, and the figure is above 50 for the past 13 months.
In October, reduced the volume of orders to Russian manufacturers with export markets. In addition, the report points to the decline in inflationary pressures, to reduce backlogs, which further supported the growth of output. However, the rate of decline in October were minimal in five months.
HSBC’s chief economist for Russia and the CIS Alexander Morozov believes that the strong results were achieved at the expense of domestic demand against the background of a difficult economic situation in the eurozone.
"Thus, domestic demand has once again defended Russia from colliding winds blowing from experiencing not best times of the eurozone economy. Indeed, despite the continued acceleration of inflation, the growth rate of private consumption remains high, stimulating the production of consumer goods, and supporting the overall growth rate in the manufacturing sector of Russia. All this promises to surprise on the results of the October release of official Rosstat data on the dynamics of growth of industrial production. A pair of additional working days in October should also help to ease the stronger data. We are concerned only about the fact that manufacturers may be misled by the nature of the current increased demand for the products. It is possible that it is caused by the growth of inflation expectations, and thus is temporary, "- quoted Morozov in a press release.
He also noted that the October survey data reduced fears about the negative impact of tighter monetary policy on the real sector.