Finance
Russian manufacturing sector sees sharper contraction in September, PMI shows
Published by Global Banking & Finance Review®
Posted on October 1, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 1, 2025
2 min readLast updated: January 21, 2026
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.
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.
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.
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.
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.
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)
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.
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.
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.
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.
Explore more articles in the Finance category
