In January 2025, the S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) rose to 53.1 from 50.8 in December, posting the fastest growth since July of the previous year. Strong gains in output and new orders drove the rise; however, growth was largely powered by domestic demand. Export orders fell for the first time in six months.
Manufacturers nudged hiring higher to meet demand, and backlog growth resumed. Supply chain problems persisted: supplier performance worsened further, though the severity of delivery-time delays eased somewhat.
On the price front, input costs rose at historically high rates, driven by higher supplier and transport costs and ultimately translating into faster output-price increases. Wage inflation climbed to its second-highest level since October 2023, exceeding the series average.
Forward-looking sentiment was positive. Investment plans and expected stronger customer demand reinforced business confidence, suggesting growth could persist in the coming months. The export weakness, however, remains a structural warning signal.
Key Takeaways:
1. S&P Global Russia Manufacturing PMI rose to 53.1 in January 2025 (vs 50.8 in December).
2. It was the fastest growth since July of the previous year.
3. Growth was domestic-demand led; export orders fell for the first time in six months.
4. Supply chain issues persisted; wage inflation hit its second-highest level since October 2023.
5. Sentiment is positive forward-looking, but export weakness remains a structural warning signal.
[883555]
