Russian manufacturing contracts more sharply in September, PMI shows
Russia’s manufacturing sector contracted at a slightly faster pace in September, according to data from S&P Global released on Wednesday. Both output and new orders fell more quickly compared to August.
The S&P Global Russia Manufacturing Purchasing Managers’ Index (PMI) dropped to 48.2 in September from 48.7 in August, marking the fourth consecutive month of decline. A PMI reading below 50 signals a contraction in activity.
Weaker demand drove the downturn, with new orders falling at the steepest pace since November 2022. Financial difficulties among clients and hesitancy to make purchases were cited as key reasons behind the drop in sales.
Jobs and optimism in focus
Employment in the sector also declined. Job losses were modest but marked the sharpest fall since March, as firms did not replace voluntary leavers.
Despite this, business confidence improved to its highest level in four months. Manufacturers expressed optimism for the year ahead, supported by plans for new product launches and expectations of better demand.
Rising costs and supply chain challenges
Input costs increased at the fastest pace in four months, driven by supply chain pressures and weaker exchange rates. While cost inflation accelerated, it remained below historical averages. Firms responded with only slight increases in selling prices.
Supply shortages and logistical difficulties continued to extend delivery times. Even so, manufacturers remain cautiously hopeful that demand will recover in the coming months.
