Financial News: Russia Factory Activity Expands Slightly In June

Russia Factory Activity Expands Slightly In June

07/01/2026 - 05:44:00 (RTTNews)

(RTTNews) - Russia's factory activity logged a renewed growth in June as output rose at the quickest pace since January 2025 amid improving demand conditions, survey results from S&P Global showed on Wednesday.

The manufacturing purchasing managers' index, or PMI, climbed to 50.3 in June from 48.8 in May. Any reading below 50 indicates contraction, while a score above 50 suggests expansion.

Among components, output increased at the steepest pace in nearly one-and-a-half years, linked to signs of improving demand conditions. New order inflows stabilized in June, ending a 12-month period of decline. This outcome was attributed to greater customer demand and successful tender bids.

Meanwhile, new export orders fell at the fastest pace since September 2025 due to a weak international sales environment.

Firms continued to reduce their workforce numbers in June, though the rate of job shedding eased notably from May's recent record.

On the price front, input price inflation remained high despite easing from May, linked to higher supplier, fuel, and material costs. Similarly, selling prices rose at a slower pace.

Russian goods producers faced supply chain issues amid logistics challenges and issues importing items from abroad following the war in the Middle East. Consequently, they also scaled back purchasing activity.

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