Russia Composite PMI Inches Higher

Russia’s S&P Global Composite PMI edged up to 49.2 in May 2026 from 49.1 in the previous month, marking its highest reading since February. However, the latest result marked the third straight month of decline in private-sector activity. New orders shrank markedly across both the manufacturing and services sectors, as financial difficulties among clients weighed on demand. Firms further reduced staffing levels while backlogs of work fell at the sharpest pace in four years, reflecting reduced pressure on operating capacity. On the price front, inflation trends were mixed. While service providers reported a further easing in cost pressures from the elevated levels seen earlier in the year, a renewed acceleration in manufacturing input costs drove overall input price inflation higher. As a result, firms also raised output charges at a faster pace. Lastly, business confidence weakened.

Russia’s S&P Global Composite PMI edged up to 49.1 in April 2026 from 48.8 in March. However, it signaled a second straight month of contraction in private sector activity, as manufacturing output and services stayed subdued. New orders declined again, with a renewed fall in services demand coinciding with a modest drop in manufacturing sales, pointing to weak overall demand conditions. Employment fell for a third consecutive month. Backlogs also deteriorated further, as service sector outstanding work declined again and manufacturing work-in-hand contracted at a faster pace. On the price front, inflationary pressures eased, with both input costs and output charges rising at the slowest pace so far in 2026, retreating from the VAT-driven spike seen earlier in the year. Despite this moderation, cost increases remained relatively elevated. Looking ahead, overall sentiment weakened, largely due to softer optimism among service providers, highlighting ongoing uncertainty in the outlook.

Russia’s S&P Global Composite PMI dropped to 48.8 in March 2026 from 50.8 in February. This marked the first contraction in private sector business activity since September 2025, dragged by renewed downturn in new orders, as the decline in manufacturing sales more than offset broadly unchanged inflows of new work in the services sector. Output fell across both sectors. Firms also reduced their staffing numbers, with job shedding reported in both manufacturing and services sectors, even as backlogs of work increased. Regarding prices, input costs and output charges rose markedly in March but at much softer rates than those seen at the start of the year following the VAT rate adjustment. Looking ahead, firms were more optimistic about output growth over the next 12 months compared with February. However, the level of confidence remained below the long-run series average.