The FINANCIAL — Russian manufacturing grew at its fastest rate in July since April 2008, the VTB Capital Purchasing Managers' Index (PMI) showed on August 2, according to RIA Novosti.
The PMI is an integral index based on a monthly poll of over 300 Russian industrial enterprises. PMI above 50.0 points shows month-on-month industrial production growth.
"July's PMI measured 52.7 points, or slightly above June's index of 52.6 points, and showed the highest rate since April 2008. The index also exceeded its long-term rate of 52.1 points," VTB Capital said.
Russia's industrial production has been on the rise for seven consecutive months, VTB Capital said.
The PMI increase in July was encouraged by the stable growth of new orders and the resumption of employment growth, VTB analysts said.
New orders increased in July for the tenth time in the last 13 months. Moreover, the growth in new orders has accelerated since June 2010 to a record high since August 2008, despite some falls in export orders, analysts said.
Prices for raw materials rose in July because of longer delivery times for supplies, with some surveyed managers pointing to customs delays and a shortage of primary materials. Inflation resulting from raw materials expenses continued to grow rapidly in July but showed signs of deceleration after hitting a 22-month high in May, the VTB survey said.
"The participants in the survey again cited raw material price growth as the main factor in inflation," VTB said.