FX.co ★ Russia Manufacturing PMI Dips to 3-Month Low

Russia’s S&P Global Manufacturing PMI fell to 48.3 in March from 49.5 in February, the lowest reading since December and the tenth consecutive month of contraction in factory activity. Output declined at the fastest pace in three months, while new orders recorded their sharpest drop since October. External demand remained weak, although the rate of decline moderated slightly.

Purchasing activity slumped, registering the steepest fall in four years, and employment contracted for the fourth month in a row. Backlogs of work continued to decrease, with their depletion accelerating despite ongoing supply delays linked to logistical disruptions.

On the price front, input cost pressures intensified, rising at the second-fastest rate in more than a year, driven by higher fuel and supplier prices, though remaining below the long-run average. Firms passed on part of these higher costs, but output price inflation eased to a marginal and historically subdued pace.

Business sentiment weakened for the second consecutive month, reaching its lowest level in nearly four years, reflecting fragile demand conditions and growing concerns over client solvency.