FX.co ★ Russia Manufacturing Returns to Growth

Russia’s S&P Global Manufacturing PMI rose to 50.3 in June from 48.8 in May, indicating the first improvement in factory activity in over a year and the strongest operating conditions since January 2025. Output grew at the fastest rate since January 2025, while new orders stabilized after twelve consecutive months of decline. However, new export orders contracted at the steepest pace since September 2025. Employment continued to fall as firms chose not to replace staff who left voluntarily, although the rate of job shedding slowed sharply from May’s record level. On the price front, both input cost and output price inflation eased, even as supplier delivery times lengthened to the greatest extent since January 2026, reflecting logistics disruptions and import difficulties linked to the war in the Middle East. Purchasing activity rose as manufacturers prepared for stronger demand. Finally, business sentiment slipped to a three-month low amid worries about customers’ purchasing power, despite expectations of higher output over the coming year.