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
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)
