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    Home > Finance > Russian factory activity growth slows as demand stagnates, PMI shows
    Finance

    Russian factory activity growth slows as demand stagnates, PMI shows

    Published by Global Banking & Finance Review®

    Posted on March 3, 2025

    2 min read

    Last updated: January 25, 2026

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    Tags:SurveyGDPManufacturingeconomic growthfinancial markets

    Quick Summary

    Russian manufacturing growth slowed in February with PMI at 50.2. Demand stagnated, but export sales rose, supported by military spending.

    Russian Manufacturing Growth Slows Amid Stagnant Demand, PMI Reports

    (Reuters) - Russian manufacturing activity grew only slightly in February as overall demand stagnated, a business survey showed on Monday.

    The S&P Global Purchasing Managers' Index (PMI) for Russian manufacturing fell to 50.2 in February from 53.1 in January, just staying above the 50 level that separates expansion from contraction.

    The slower upturn was attributed to a weaker rise in output and broadly unchanged new order inflows. Overall demand conditions stagnated, despite a renewed expansion in new export sales.

    "Differing from the trend for total new orders, Russian manufacturers indicated a renewed rise in new export sales midway through the first quarter," S&P Global said. "Anecdotal evidence mentioned that greater demand from neighbouring countries boosted new export orders."

    Russia's significant spending on military equipment and weapons since invading Ukraine in February 2022 has buoyed a manufacturing sector that otherwise may have suffered as some countries shunned Moscow.

    The pace of production growth was the slowest in four months, with some firms citing subdued client demand, while purchasing activity declined for the first time in two-and-a-half years as firms utilised existing stocks to fulfil orders.

    Hopes for an uptick in customer demand and the use of new production facilities underpinned strong expectations for future output.

    "Business confidence remained upbeat, as firms anticipate further output growth in the coming year," S&P Global said.

    (Reporting by Alexander Marrow; Editing by Christina Fincher)

    Key Takeaways

    • •Russian manufacturing growth slowed in February.
    • •PMI fell to 50.2, indicating marginal expansion.
    • •Demand conditions stagnated despite export sales rise.
    • •Military spending supports the manufacturing sector.
    • •Business confidence remains optimistic for future growth.

    Frequently Asked Questions about Russian factory activity growth slows as demand stagnates, PMI shows

    1What was the PMI for Russian manufacturing in February?

    The S&P Global Purchasing Managers' Index (PMI) for Russian manufacturing fell to 50.2 in February from 53.1 in January.

    2What factors contributed to the slowdown in manufacturing growth?

    The slower upturn was attributed to a weaker rise in output and broadly unchanged new order inflows, with overall demand conditions stagnating.

    3How has military spending affected Russian manufacturing?

    Russia's significant spending on military equipment and weapons since invading Ukraine has buoyed the manufacturing sector, which might have otherwise suffered.

    4What are the expectations for future output in Russian manufacturing?

    Business confidence remained upbeat, as firms anticipate further output growth in the coming year, supported by hopes for an uptick in customer demand.

    5What was notable about new export sales in February?

    Russian manufacturers indicated a renewed rise in new export sales midway through the first quarter, contrasting with the trend for total new orders.

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