FX.co ★ Russia Manufacturing Shrinks for 7th Month

In December 2025, the S&P Global Russia Manufacturing PMI experienced a slight decline, registering at 48.1 compared to November's 48.3. This indicates a seventh straight month of contraction within the sector. Notably, manufacturing output decreased at the most rapid rate since March 2022, a result of continued weak demand, as reflected in the reduction of new orders. Export orders remained on a significant downward trajectory, consistent with the pace observed in November. Reacting to these conditions, manufacturers scaled back employment levels, with the rate of job cuts being modest yet the quickest since September, driven by dwindling production volumes. The weakening of input purchasing mirrored softened expectations for future output. Additionally, input cost inflation surged to a nine-month peak, influenced by rising supplier and raw material expenses. Consequently, output price inflation climbed to its second-highest point since May, as companies attempted to transfer the increased costs onto consumers. Business sentiment also diminished, reaching its lowest point since May 2022, highlighting apprehensions about persistently sluggish demand.