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    Home > Finance > Russian manufacturing sector sees sharper contraction in September, PMI shows
    Finance

    Russian manufacturing sector sees sharper contraction in September, PMI shows

    Published by Global Banking & Finance Review®

    Posted on October 1, 2025

    2 min read

    Last updated: January 21, 2026

    Russian manufacturing sector sees sharper contraction in September, PMI shows - Finance news and analysis from Global Banking & Finance Review
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    Tags:SurveyGDPManufacturingfinancial stability

    Quick Summary

    Russia's manufacturing sector contracted more sharply in September, with PMI at 48.2. New orders and production fell, but optimism for future growth remains.

    Table of Contents

    • Overview of the Manufacturing Sector's Performance
    • Decline in New Orders and Production
    • Employment Trends in Manufacturing
    • Cost Pressures and Supply Chain Challenges
    • Manufacturers' Optimism for Future Growth

    Russia's Manufacturing Sector Faces Deeper Contraction in September

    Overview of the Manufacturing Sector's Performance

    MOSCOW (Reuters) -Russia's manufacturing sector contracted slightly faster in September than the previous month as both output and new orders shrank more quickly, a survey by S&P Global showed on Wednesday.

    Decline in New Orders and Production

    The S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) fell to 48.2 in September from 48.7 in August, marking the fourth consecutive month of decline. PMI readings below 50 indicate contractions in activity.

    Employment Trends in Manufacturing

    The drop in production was attributed to weaker demand conditions, with new orders falling at the steepest rate since November 2022. Financial difficulties among clients and hesitancy in purchasing were cited as key factors affecting sales.

    Cost Pressures and Supply Chain Challenges

    Employment in the sector also saw a renewed decline, driven by resignations and the non-replacement of voluntary leavers. The pace of job losses was modest but the steepest since March.

    Manufacturers' Optimism for Future Growth

    Despite the downturn, manufacturers expressed stronger optimism for the year ahead, with confidence reaching its highest level in four months. This optimism was supported by plans for new product development and hopes for improved demand conditions.

    Cost pressures intensified, with input prices rising at the fastest pace in four months, driven by supply chain strains and unfavourable exchange rate movements. 

    However, the rate of increase remained below historical averages, and firms endeavoured to pass on higher costs to customers through very slightly increased selling prices.

    The survey highlighted ongoing challenges for Russian manufacturers, including supply shortages and logistical issues, which contributed to longer lead times for inputs. Despite these hurdles, the sector remains hopeful for a rebound in demand.

    (Reporting by Gleb Bryanski; Editing by Hugh Lawson)

    Key Takeaways

    • •PMI fell to 48.2 in September, indicating contraction.
    • •New orders and production declined rapidly.
    • •Employment saw a renewed decline due to resignations.
    • •Manufacturers remain optimistic about future growth.
    • •Cost pressures rise due to supply chain issues.

    Frequently Asked Questions about Russian manufacturing sector sees sharper contraction in September, PMI shows

    1What are new orders?

    New orders refer to the total number of orders received by manufacturers during a specific period. A decline in new orders can indicate weakening demand in the market.

    2What are cost pressures?

    Cost pressures occur when the costs of production inputs rise, impacting profit margins. This can be due to factors like supply chain issues or increased material costs.

    3What is employment trend?

    Employment trends refer to the changes in job availability and workforce levels within a sector. In manufacturing, trends can indicate growth or contraction based on demand and production levels.

    4What is financial stability?

    Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of the economy without excessive volatility or crises.

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