Russia's manufacturing sector continued to contract in February, although the rate of decline slowed for the second consecutive month, according to S&P Global. The sector's Purchasing Managers' Index (PMI) edged up to 49.5 in February from 49.4 in January, Reuters reported.

A reading below 50 indicates contraction, while a reading above signals expansion. The latest figure marks the slowest rate of decline in nine months.

New orders stabilized, playing a key role in supporting the index after eight months of contraction. Some companies noted increased customer interest, though overall demand conditions remained weak.

The international sales environment experienced a sharper downturn, with new export orders falling at a faster pace compared to January.

Output levels decreased again, continuing a 12-month streak of decline, albeit at a marginal rate. Employment in the sector fell for the third consecutive month, with the pace of layoffs accelerating to its highest level since June 2025.

Input and output price inflation rates eased in February, following a sharp rise in January due to value-added tax. However, the inflation rate remained the second-fastest in a year, attributed by companies to higher fuel and raw material costs.

Business confidence declined to one of its lowest levels in over three and a half years, influenced by challenging economic conditions. Optimism persisted, driven by investment in new facilities and technology, and hopes for increased demand.

Input delivery times lengthened for the fourth consecutive month, although the severity of delays decreased slightly. Companies continue to face difficulties in logistics and finding suppliers.