Russia Manufacturing Sector Contracts in August

The S&P Global Russia Manufacturing Purchasing Managers’ Index fell to 48.8 in August, signaling a contraction in the manufacturing sector after three consecutive months of growth. The index dropped from 50.7 in July, with the decline driven primarily by a drop in new orders caused by weak client demand and reduced customer liquidity.

Export business declined at the second-fastest pace since September 2025, prompting manufacturers to reduce their workforce at the quickest rate in three months. Operating expenses rose at the sharpest pace since January, fueled by higher prices for imported goods and fuel. These costs led to the fastest increase in output prices seen in seven months.

Logistics complications and fuel shortages further strained the sector by lengthening supplier delivery times. Despite these immediate operational challenges, business confidence improved as companies expect stronger demand and plan to increase advertising investments over the next year.