Russia’s S&P Global Composite PMI dropped to 48.8 in March 2026 from 50.8 in February. This marked the first contraction in private sector business activity since September 2025, dragged by renewed downturn in new orders, as the decline in manufacturing sales more than offset broadly unchanged inflows of new work in the services sector. Output fell across both sectors. Firms also reduced their staffing numbers, with job shedding reported in both manufacturing and services sectors, even as backlogs of work increased. Regarding prices, input costs and output charges rose markedly in March but at much softer rates than those seen at the start of the year following the VAT rate adjustment. Looking ahead, firms were more optimistic about output growth over the next 12 months compared with February. However, the level of confidence remained below the long-run series average.

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