FX.co ★ Russia Manufacturing Shrinks the Most in Near 3 Years

In March 2025, the S&P Global Russia Manufacturing PMI registered a drop to 48.2, down from February's figure of 50.2. This indicates the first contraction in activity since last September, driven by a renewed contraction in both output and new orders. This recent data reflects the sharpest decline since April 2022, with output shrinking to its lowest since July 2022. New orders decreased for the first time since last October and did so at their fastest rate in nearly three years, affected by declines in both domestic and international sales. Employment saw a slight increase, marking the second-fastest rate of job creation since last August. Concurrently, backlogs of work fell at the most significant rate since February 2024. In reaction to these conditions, companies reduced their purchasing activity to the sharpest extent since August 2022. Regarding prices, input costs rose due to higher material expenses and more favorable exchange rate fluctuations, although inflation has moderated since December 2022. Additionally, the inflation of output costs decelerated to its lowest in two years. Lastly, business sentiment reached a four-month high.