Published by Global Banking & Finance Review®
Posted on December 29, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleRussia's manufacturing PMI fell to 48.1 in December, marking the fastest contraction since March 2022, driven by weak demand and rising costs.
MOSCOW, Dec 29 (Reuters) - Russia's manufacturing sector contracted at its fastest rate since March 2022 in December, as output and new orders fell sharply, S&P Global reported on Monday.
The Purchasing Managers' Index (PMI) for Russian manufacturing dropped to 48.1 in December from 48.3 in November, marking a seventh consecutive month of contraction. A PMI reading below 50 indicates a contraction, while above 50 signals growth.
Production levels declined for the 10th month in a row, with the rate of decrease accelerating to the sharpest since March 2022. Firms attributed this to weak demand and a reduction in new orders.
New sales fell for the seventh consecutive month, although the pace of decline was the slowest in this period, as customer hesitancy and reduced purchasing power weighed on demand.
Employment in the manufacturing sector also contracted, with workforce numbers falling for the third time in four months. The rate of job shedding was the fastest since September, driven by lower production requirements.
Input cost inflation accelerated to its highest level since March, with firms citing higher supplier and raw material prices. Despite subdued demand, manufacturers raised their selling prices to pass on increased costs to customers.
Confidence among manufacturers weakened, with optimism for future output at its lowest since May 2022. Concerns over subdued demand conditions and hopes for a rebound in sales and investment in new facilities were noted.
(Reporting by Gleb Bryanski; Editing by Hugh Lawson)
The Purchasing Managers' Index (PMI) is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector. A PMI reading above 50 indicates expansion, while below 50 indicates contraction.
Input cost inflation refers to the increase in the costs of raw materials and other inputs used in the production process. This can lead to higher prices for consumers.
Weak demand occurs when consumers and businesses are not purchasing goods and services at expected levels, which can lead to lower production and economic slowdown.
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