Russia’s manufacturing downturn eases in August, PMI shows

Russia’s manufacturing sector contracted for a third straight month in August, though at a softer pace, as weak demand continued to weigh on output and new orders, S&P Global said on Monday.

The manufacturing Purchasing Managers’ Index (PMI) rose to 48.7 in August from 47.0 in July, remaining below the 50.0 threshold that separates growth from contraction.

Firms reported a further decline in output and new orders, citing financial difficulties among customers and subdued export demand.

However, employment returned to growth, with job creation at the fastest pace since July 2024, supported by extended work shifts and investment plans.

Cost pressures eased sharply, with input prices rising at the slowest rate since February 2009, while companies cut selling prices for the first time in nearly three years and the sharpest since July 2022 to stimulate demand.

Stocks of finished goods rose for a second month, while input buying was reduced.

Business confidence improved but remained historically weak, with manufacturers highlighting plans for advertising and new product launches despite subdued demand.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser