Russia Private Sector Growth at 7-Month High

Russia’s S&P Global Composite PMI edged up to 50.8 in September 2026 from 50.6 in the prior month, marking the highest reading since February and signalling a second straight month of expansion in private-sector activity. Factory output fell at a softer pace, while services activity grew at the same pace as in August. New orders stabilised after six consecutive months of contraction, with employment continuing to fall, but the pace of job cuts eased to its slowest since February. Capacity pressures remained subdued, while backlogs of work declined again. On inflation, pressures moderated, with both input costs and output charges rising at their slowest rates in three months. Manufacturers and service providers reported slower increases in costs and selling prices, suggesting easing inflationary pressures across the private sector.

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.