Russia’s manufacturing sector contracts after 28-month growth

Russia’s manufacturing sector slipped into contraction in September 2024, ending a 28-month growth streak, according to S&P Global’s latest Purchasing Managers’ Index (PMI) data.

The PMI fell to 49.5, down from 52.1 in August, signaling a slight deterioration in performance. The decline was driven by contractions in output, new orders, and employment, with subdued demand and supply chain disruptions, including delivery delays and material shortages, weighing on production.

Input cost and output price inflation accelerated, with higher transport and supplier prices passed on to customers. Despite these challenges, new export orders rose, particularly from Central Asia. However, business confidence fell to a 19-month low amid concerns over future outlook.

Attribution: S&P Global

Subediting: M. S. Salama