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Russian factory activity shrinks at fastest pace since March 2022, PMI shows
Published by Global Banking and Finance Review
Posted on December 29, 2025
MOSCOW, Dec 29 (Reuters) – Russia’s manufacturing sector contracted at its fastest rate since March 2022 in December, as output and new orders fell sharply, S&P Global reported on Monday.
The Purchasing Managers’ Index (PMI) for Russian manufacturing dropped to 48.1 in December from 48.3 in November, marking a seventh consecutive month of contraction. A PMI reading below 50 indicates a contraction, while above 50 signals growth.
Production levels declined for the 10th month in a row, with the rate of decrease accelerating to the sharpest since March 2022. Firms attributed this to weak demand and a reduction in new orders.
New sales fell for the seventh consecutive month, although the pace of decline was the slowest in this period, as customer hesitancy and reduced purchasing power weighed on demand.
Employment in the manufacturing sector also contracted, with workforce numbers falling for the third time in four months. The rate of job shedding was the fastest since September, driven by lower production requirements.
Input cost inflation accelerated to its highest level since March, with firms citing higher supplier and raw material prices. Despite subdued demand, manufacturers raised their selling prices to pass on increased costs to customers.
Confidence among manufacturers weakened, with optimism for future output at its lowest since May 2022. Concerns over subdued demand conditions and hopes for a rebound in sales and investment in new facilities were noted.
(Reporting by Gleb Bryanski; Editing by Hugh Lawson)