Russia manufacturing PMI rises to 49.8 but remains in contraction

  • Russia's manufacturing sector remained in contraction in September as weak demand reduced output and new orders.
  • The PMI rose to 49.8 from 48.8 in August, remaining below the 50-point growth threshold.
  • Export orders fell for an 11th month, while employment declined for a 10th consecutive month at the fastest pace since May.

Russia's manufacturing sector remained in contraction in September despite the seasonally adjusted S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) rising to 49.8 from 48.8 in August. The 50-point threshold separates expansion from contraction. Output and total new orders fell for a second consecutive month amid weak demand, higher prices and increased competition. Export orders declined for an 11th month at their fastest pace since May 2022, while employment fell for a 10th month at the fastest rate since May. Cost pressures eased to a three-month low, output-price inflation slowed to its weakest level since June, and supplier delivery times lengthened the most since October 2024 because of transportation and logistics problems. Manufacturers' confidence in the year ahead reached a three-month high on hopes for stronger demand and new customers, although it remained below the series average.

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