The reduced demand from foreign consumers and decrease in the rate of growth of domestic demand has forced the industry to move to lower selling prices. Simultaneously, the growth rate of production slowed to a four-month low
Selling prices for the products of Russian industry in February 2017 fell for the first time in more than a year and a half, says the report by Markit. In previous times the reduction in selling prices by analysts of the company were recorded in July 2015.
According to a senior economist at Markit Paul Smith, the decrease in sales prices due to weakening demand from customers and, first and foremost, with the decline in demand from abroad. Reduced export orders, Markit is already three and a half years. It continued in February 2017, which led to a decline in the growth rate of the total number of new orders to the lowest since September last year.
“Of the three main groups of producers growth acceleration occurred only in the group of consumer goods,” the report says Markit.
The index of business activity (PMI) in the manufacturing sectors of Russia by the end of February 2017 fell to 52.5 points (in January was 54.7 points), reaching at least 4 months. However, the PMI is still confidently holds above the critical level (50 points), above which indicates growth in business activity.
“Despite the February slowdown, the company remains confident in the increase in production volumes in the coming year. Companies expect an increase in demand, the new long-term contracts and the resumption of economic growth will lead to higher production volumes in the next 12 months,” reads the report, analysts Markit.
Assessing the degree of optimism of Russian Industrialists, Paul Smith noted that it was “the brightest from may 2015”.