Russia’s manufacturing sector continued to contract in February, but the pace of decline eased for the second month in a row, according to the latest Purchasing Managers’ Index (PMI) data released on Monday. The S&P Global PMI for Russian manufacturing rose slightly to 49.5 in February from 49.4 in January, remaining below the 50 mark that separates contraction from expansion but signalling a slower rate of downturn.
The stabilization was supported by a modest improvement in new orders, which firms reported as steadier compared with previous months, although demand conditions across the sector remained subdued. Output continued to fall, extending the manufacturing contraction to 12 months, even as the rate of decline remained fractional.
Export demand weakened further, with new foreign orders declining at a faster pace than in January, underscoring persistent external pressures on Russian industry. Employment in manufacturing fell for the third consecutive month, with job cuts accelerating to their fastest pace since June 2025.
Inflationary pressures eased somewhat in February after a VAT‑driven spike in January, but input and output price increases remained among the second‑highest in the past year, as firms continued to contend with elevated costs for fuel and raw materials. Business confidence dipped to one of its lowest levels in over three‑and‑a‑half years, though some respondents expressed cautious optimism linked to investment plans and hopes for stronger future demand.