Russia’s private sector activity contracts in September ’24

Russia’s private sector business activity saw a renewed contraction in September, with the S&P Global Russia Composite PMI Output Index falling to 49.4 from 52.1 in August. The downturn was driven by a decline in manufacturing production and a slower rise in services output.

Manufacturing new orders dropped, while services new business saw only modest growth. Total new sales increased but at the weakest rate in the current 20-month growth sequence.

Input price inflation accelerated for both manufacturers and service providers, leading firms to raise selling prices at a faster pace. Despite rising cost burdens, employment levels across the private sector increased slightly.

While services firms added jobs at a slower pace, manufacturing experienced a contraction in workforce numbers.