Finance
Russian manufacturing sector contracts at slower pace in February, PMI shows
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
In February, Russia’s manufacturing PMI edged up to 49.5 from 49.4 in January, marking a modest easing in the rate of contraction. While new orders stabilized, export orders and production continued to decline, and employment and business sentiment remained notably weak.
Russia's Manufacturing Sector Sees Slower Contraction in February PMI
Overview of Russia's Manufacturing PMI Performance
MOSCOW, March 2 (Reuters) - Russia's manufacturing sector continued to contract in February, but the pace of decline eased for the second consecutive month as new orders stabilised, S&P Global reported on Monday.
PMI Figures and Interpretation
The Purchasing Managers' Index (PMI) for Russian manufacturing rose slightly to 49.5 in February from 49.4 in January. A reading below 50.0 indicates contraction, while a figure above signifies growth. This marks the softest downturn in a nine-month sequence of decline.
Factors Supporting the PMI
The stabilisation in new orders was a key factor supporting the PMI, following an eight-month period of contraction. Some firms noted increased client interest, although overall demand conditions remained subdued.
Export and International Sales Environment
However, the international sales environment weakened further, with new export orders declining at a faster pace than in January.
Sector Performance and Employment
Production Levels
Production levels fell again, extending the current 12-month sequence of decline, though the rate of contraction was only fractional. Employment in the sector decreased for the third month in a row, with the rate of job shedding accelerating to its fastest since June 2025.
Price Inflation Trends
Input and output price inflation cooled in February after a VAT-driven spike in January. Despite this, inflation rates remained the second-fastest in a year, with firms citing higher fuel and raw material costs.
Business Confidence and Outlook
Confidence Levels
Business confidence dipped to one of the lowest levels in over three-and-a-half years, weighed down by challenging conditions. However, optimism persisted, driven by investment in new facilities and technology, and hopes for stronger demand.
Logistics and Supply Chain Challenges
Delivery times for inputs lengthened for the fourth consecutive month, though the extent of delays eased slightly. Firms continued to face difficulties in logistics and sourcing suppliers.
(Reporting by Gleb Bryanski; Editing by Toby Chopra)
Key Takeaways
- •The PMI of 49.5 in February is the weakest contraction in nine months, signaling slight improvement in operating conditions compared to the previous months. (tradingeconomics.com)
- •New orders stabilized after eight months of decline, though export orders and production still contracted, and employment fell at the fastest pace since June 2025. (tradingeconomics.com)
- •Input and output price inflation cooled compared to January’s VAT-driven spike but remained second-fastest in a year; business confidence remained near multi-year lows, despite optimism from anticipated investments. (intellinews.com)
References
Frequently Asked Questions about Russian manufacturing sector contracts at slower pace in February, PMI shows
1What was the Russian manufacturing PMI for February 2025?
The Russian manufacturing PMI for February 2025 was 49.5, up from 49.4 in January, indicating a slower pace of contraction.
2What factors supported the stabilization of Russia's manufacturing PMI?
The stabilization was mainly supported by steady new orders and increased client interest despite overall subdued demand.
3How did export orders for Russian manufacturers perform in February?
Export orders declined at a faster pace in February compared to January, indicating a weakening international sales environment.
4What trends were observed in Russian factory employment in February 2025?
Employment in Russia's manufacturing sector dropped for the third consecutive month, with job shedding accelerating to its fastest since June 2025.
5How did price inflation in the Russian manufacturing sector change in February?
Input and output price inflation cooled in February after a VAT-driven spike in January, but remained the second-fastest rate in a year.
