Russia Private Sector Grows for First Time in 6 Months

Russia’s S&P Global Composite PMI rose to 50.6 in August 2026 from 49.6 in the previous month, marking the highest reading since February and signalling the first expansion in private-sector activity in six months. The upturn was driven by a renewed increase in services activity, which offset a further decline in manufacturing output. However, demand conditions remained subdued, with new orders continuing to fall, albeit at only a fractional pace. Weak demand also weighed on employment, prompting another round of job shedding across the private sector as firms reduced headcounts amid a further decline in outstanding business. On the price front, overall input-cost inflation eased in August, while output charges across both manufacturers and service providers rose at faster rates. Meanwhile, business confidence improved, with optimism about the private-sector outlook rising to its highest level since March.

Russia’s S&P Global Composite PMI rose to 49.6 in July 2026 from 48.9 in the prior month, marking the highest reading since February. However, the index remained below the 50 threshold for a fifth straight month, signaling that private-sector activity continued to contract. The manufacturing sector remained the brighter spot, with output and new orders expanding, while service providers reported further declines in business activity and new sales. Weak demand also prompted firms to cut staffing levels across both sectors, extending the downturn in employment. On the price front, input cost inflation accelerated, partly driven by fuel shortages, prompting companies to pass on some of the higher operating expenses through faster increases in selling prices. Meanwhile, business confidence stayed subdued as firms cited soft demand, weaker client purchasing power, and uncertainty over the near-term outlook, limiting expectations for a meaningful recovery.

Russia’s S&P Global Composite PMI edged down to 48.9 in June 2026 from 49.2 in the previous month, marking the lowest reading since March and signaling a fourth consecutive month of contraction in private-sector activity. The decline reflected continued weakness in the service sector, which more than offset a further expansion in manufacturing output. New orders fell again, driven by a sharper drop in services demand, while manufacturers reported broadly stable sales. Meanwhile, backlogs of work continued to decline, pointing to spare capacity across the private sector. In response, firms extended workforce reductions, with some citing cost-cutting measures. On the price front, both input costs and output charges continued to increase, but inflationary pressures eased further, with the pace of cost and selling price growth slowing to the weakest so far in 2026 across both manufacturing and services.