Russia Manufacturing Growth Hits 18-Month High

Russia’s S&P Global Manufacturing PMI rose to 50.7 in July from 50.3 in June, signaling the strongest improvement in factory activity since January 2025. Output expanded at the quickest pace since January 2025, while new orders grew at the fastest rate since May 2025, supported by stronger domestic demand. Meanwhile, new export orders fell at the sharpest pace since October 2022. Employment declined further as firms continued not to replace voluntary leavers, though the pace of job shedding eased to a four-month low. Input cost and selling price inflation accelerated, as fuel shortages, transportation issues, and higher supplier costs pushed input cost inflation to its fastest pace since January 2026. Supplier delivery times lengthened to the greatest extent since February 2025 amid logistics disruptions, while firms increased purchasing activity to replenish stocks. Business confidence fell to its lowest level since May 2020 amid customer uncertainty and intensifying competition.

Russia’s S&P Global Manufacturing PMI rose to 50.3 in June from 48.8 in May, signaling the first improvement in factory activity in over a year and the strongest operating conditions since January 2025. Output expanded at the fastest pace since January 2025, while new orders stabilized after 12 months of decline. Meanwhile, new export orders fell at the sharpest rate since September 2025. Employment declined further as firms did not replace voluntary leavers, though the pace of job shedding eased markedly from May's record. On prices, both input cost and selling price inflation softened, despite supplier delivery times lengthening to the greatest extent since January 2026 due to logistics disruptions and import challenges following the war in the Middle East. Purchasing activity increased as firms prepared for stronger demand. Lastly, sentiment weakened to a three-month low amid concerns over customers' purchasing power, despite expectations for higher output over the coming year.

Russia’s S&P Global Manufacturing PMI rose to 48.8 in May from 48.1 in April, which marked the steepest contraction in four months, while extending the downturn in factory activity to a 12th straight month. The latest reading also signaled the smallest contraction in three months, as output returned to growth. Meanwhile, new orders fell at the fastest pace since July 2025, with new export orders declining at the fastest rate since September 2025. Employment declined solidly, marking the second-fastest rate of job shedding since June 2025. Purchasing activity rose at the fastest pace since the start of 2025, while delivery times lengthened, although the extent of the deterioration was only marginal. On prices, input cost inflation accelerated to the second-sharpest pace since January 2025, driven by higher fuel, metal, and electrical equipment costs. Selling prices rose at the fastest pace since February 2025. Lastly, sentiment weakened amid concerns over customers' purchasing power.