Russia's Manufacturing PMI Edges Up to 49.8 in September

Russia's manufacturing Purchasing Managers' Index (PMI) rose slightly to 49.8 points in September, according to a report from TASS.

Despite the increase, the index remained below the 50-point mark that separates expansion from contraction in the manufacturing sector, indicating that Russian factory activity continued to shrink, albeit at a marginally slower pace than in previous readings.

The report noted that demand for Russian manufactured goods remained weak throughout September, a factor that has continued to weigh on the broader health of the country's industrial sector.

What the PMI Measures

The manufacturing PMI is a widely used indicator that tracks changes in output, new orders, employment, and other factors within a country's manufacturing sector. A reading above 50 signals expansion, while a reading below 50 signals contraction. A figure of 49.8 suggests the sector is still contracting, though the pace of decline may be stabilizing compared with earlier months.

TASS did not provide further detail on the specific sub-indices driving the latest reading, such as new orders or export demand, nor did it offer forecasts for how the index might move in subsequent months.

Context

Russia's manufacturing sector has faced ongoing pressure linked to Western sanctions, disrupted trade relationships, and broader economic uncertainty stemming from the war in Ukraine, all of which have affected demand for Russian-made goods both domestically and abroad.