Russia Manufacturing Shrinks the Most in Over 3 Years

The S&P Global Russia Manufacturing PMI declined to 47.0 in July 2025 from 47.5 in June, marking the second consecutive month of contraction in the sector. It was also the steepest decline since March 2022, driven by a continued fall in new orders—now down for the fourth straight month and at the fastest pace since March 2022. Meanwhile, output shrank at the sharpest rate in three years. In response, both employment and input buying declined, though at slightly softer rates. Supplier delivery times were broadly unchanged, as heightened competition for inputs led to some shortening of lead times. On the price front, input cost inflation eased, while output price inflation slowed to its softest level since November 2022 amid rising competitive pressures. Lastly, business sentiment weakened to its lowest point in nearly three years.