Private-sector activity shrank for a fifth straight month as manufacturing outperformed services, while fuel shortages and weak demand weighed on hiring, prices and business confidence.
Russia’s S&P Global Composite PMI rose to 49.6 in July 2026 from 48.9 in June, its highest level since February, but remained below the 50 mark that separates expansion from contraction. That left private-sector activity shrinking for a fifth consecutive month. Manufacturing was the stronger part of the economy, with output and new orders increasing, while services continued to weaken as business activity and new sales declined further. Soft demand pushed firms to reduce headcount across both sectors, extending the employment downturn. Cost pressures also intensified, with input price inflation accelerating partly because of fuel shortages, and companies responded by raising selling prices faster to pass through some of the higher operating costs. Business confidence remained muted as firms pointed to weak demand, lower client purchasing power and uncertainty over the near-term outlook, tempering expectations for a meaningful recovery.