Russia’s S&P Global Composite PMI rose to 49.6 in July 2026 from 48.9 in the previous month, reaching its highest level since February. Nevertheless, the index remained below the neutral 50 mark for the fifth consecutive month, indicating an ongoing contraction in private-sector activity. The manufacturing sector continued to outperform, with both output and new orders increasing, while service providers reported further declines in business activity and new sales. Weak demand also led companies in both sectors to reduce staffing, prolonging the downturn in employment.
On the price front, input cost inflation picked up, driven in part by fuel shortages, which pushed firms to pass on some of their higher operating costs through faster increases in selling prices. At the same time, business confidence remained muted, as companies pointed to soft demand, diminished client purchasing power, and uncertainty about the near-term outlook, all of which constrained expectations for a meaningful recovery.
