Russia Manufacturing Contracts for 3rd Month

Russia’s S&P Global Manufacturing PMI inched up to 49.9 in October from 49.8 in September, indicating a softer contraction in the sector for a third consecutive month, as output and new orders fell marginally. New orders decreased for the third consecutive month amid reports of competitive pressures, muted demand, and reduced purchasing power among customers, with overseas demand falling the most since May 2022. Output declined for the third month, albeit at a slightly slower pace, while backlogs of work depleted for the twenty-first consecutive month. Firms responded to lower workloads by scaling back employment again, while purchasing activity fell at a faster pace. On the price front, input costs rose due to higher material costs and increased supplier charges, though input cost inflation eased to a seven-month low. Output price inflation slowed to its lowest level since April amid competitive pressures. Finally, business sentiment improved to a four-month high.

Russia’s S&P Global Manufacturing PMI rose to 49.8 in September from 48.8 in August, indicating a softer contraction in the sector for a second consecutive month. Output declined for the second month, albeit at a slower pace, while new orders fell at a slower rate amid weak demand and higher prices. Meanwhile, new export orders fell at the fastest pace since May 2022. Employment declined for a 10th consecutive month, with the pace of job shedding accelerating to the fastest since May. On prices, input cost inflation eased to a three-month low, while selling price inflation also slowed to its weakest pace since June. Supplier delivery times lengthened to the greatest extent since October 2024 due to transportation delay and logistic issues. Purchasing activity declined sharpest since April as firms reduced input buying and drew down stocks amid lower new order inflows. Lastly, sentiment improved as firms expected stronger demand conditions and sought to attract new customers.

Russia’s S&P Global Manufacturing PMI fell to 48.8 in August from July’s 18-month high of 50.7, marking the first contraction in the sector in three months. The contraction was driven by decreases in production and new orders, while employment and stock levels contracted further. Output shrank for the first time since April, albeit at a marginal pace, linked to lower new orders. The modest decrease in new orders was due to weak client demand, with foreign sales recording the second-fastest drop since last September. Firms recorded a renewed fall in input buying, while supplier delivery times lengthened the most since December 2024 due to logistics issues and fuel shortages. On the price front, both input and output cost inflation accelerated to seven-month highs, due to higher fuel and imported goods prices. Looking ahead, business sentiment improved amid hopes of strengthening demand conditions and increased investment in advertising.