Russian Manufacturing Returns to Growth for First Time in Over a Year

By Reuters July 1, 2026 ORMETO-YUMZ machine-building factory in the city of Orsk. ural56.ru Russia's manufacturing sector returned to growth in June for the first time in just over a year ​as output rose at its fastest pace since January ‌2025 and new orders stabilized, a business survey showed on Wednesday. The S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) rose to 50.3 in June ​from 48.8 in May. The 50 mark separates ​growth from contraction. Output expanded for a second straight month, ⁠with the pace of growth quickening fractionally to its fastest ​since January 2025. New orders stabilised after 12 straight months ​of decline. Export demand remained weak. New export orders fell for an eighth consecutive month and at the sharpest rate since September 2025, with ​firms citing weak overseas markets, unfavorable exchange rate moves and ​competition. Manufacturers cut jobs for a seventh month, saying voluntary leavers were not ‌replaced ⁠amid spare capacity. Backlogs of work fell for a 17th consecutive month, though the pace of decline softened markedly from May's recent record. Input cost and output price inflation both slowed ​slightly from May, ​while vendor ⁠delivery times lengthened to the greatest extent since January amid logistics disruptions and import challenges ​linked to the conflict in the Middle East. Firms increased ​purchasing ⁠activity for a second month and built stocks of inputs at the fastest pace since February 2023 in anticipation of stronger ⁠orders ​ahead. On the other hand, confidence about ​the next 12 months inched down to a three-month low and stayed ​below the series average. Read more about: Manufacturing Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Lada Sales Plunge 25% in 2025 as High Interest Rates, Recycling Fees Bite After Lada, 2025’s second and third biggest sellers in Russia were the Chinese brands Haval at 173,300 vehicles and Chery at 99,810. 1 Min read AvtoVAZ Returns to 5-Day Workweek After Sales Slump in 2025 In late September, the carmaker cut wages, laid off employees and shortened its work schedule to four days in response to falling sales. 1 Min read opinion Tatyana Rybakova Russia's Self-Imposed Isolation Reaches a New Frontier: Medicine Moscow's blind patriotism and shunning of anything foreign means Russians will have to pay higher prices for less effective medication. 6 Min read Feature ‘I Don’t Know When This Will End’: As Ukraine Steps Up Strikes, Crimea Grapples With Fuel Shortages and Blackouts Kyiv's campaign to isolate Crimea and ramp up pressure on Moscow is transforming life on the annexed peninsula. 5 Min read