By Micah Jonah, March 2, 2026
Russia’s manufacturing sector remained in contraction in February, though the pace of decline eased for a second consecutive month as new orders stabilized, according to data released by S&P Global.
The Purchasing Managers’ Index (PMI) for Russian manufacturing rose slightly to 49.5 in February from 49.4 in January. A reading below 50 indicates contraction, while above 50 signals expansion. The latest figure marks the softest downturn in a nine-month sequence of decline.
Demand Shows Tentative Signs Of Stabilization:
The moderation in contraction was supported by stabilizing new orders after eight months of decline. Some firms reported improved client interest, though overall demand conditions remained subdued.
Export performance, however, weakened further. New foreign orders fell at a faster pace compared with January, reflecting ongoing pressures in international markets.
Output And Employment:
Production levels continued to decline, extending a 12-month sequence of contraction. The rate of decline was described as only marginal, but output has yet to return to sustained growth.
Employment in the sector fell for the third consecutive month, with job losses accelerating to their fastest pace since June 2025.
Inflation And Costs:
Input and output price inflation cooled in February after a January spike driven by a value-added tax increase. Despite easing, price pressures remained elevated, with companies citing higher fuel and raw material costs. Inflation rates were still the second-fastest recorded over the past year.
Supplier delivery times lengthened for the fourth month in a row, though delays were less severe than in previous months. Firms continued to report challenges related to logistics and sourcing materials.
Business Sentiment:
Business confidence slipped to one of its lowest levels in more than three-and-a-half years, reflecting difficult operating conditions.
Nevertheless, some manufacturers expressed cautious optimism, pointing to investment in new facilities and technology and expectations of stronger demand ahead.
The latest PMI data suggest Russia’s manufacturing downturn may be stabilizing, but the sector remains under pressure from weak demand, export challenges and persistent cost constraints.
