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

The S&P Global Russia Manufacturing PMI decreased to 47.5 in June 2025, compared to 50.2 in May, indicating a return to contraction in manufacturing activity. This recent figure represents the sharpest decline since March 2022, as new orders continued to fall and output contracted more rapidly. New sales experienced the most significant drop since March, influenced by diminished purchasing power and weak client demand. Additionally, international sales decreased at the fastest rate since November 2022 due to adverse exchange rates. Consequently, employment levels fell, with the rate of job reductions the most rapid since April 2022, and backlogs diminished swiftly. Regarding pricing, the inflation of input costs slowed to its lowest point since February 2020, a result of paused material price hikes. Similarly, the pace of increase in output costs softened, reaching its slowest since November 2022. Looking forward, business confidence weakened to its lowest level since October 2022 due to escalating concerns about global economic instability.