Russia's industry showed the fastest rate of decline since March 2022

Business activity in the Russian industrial sector in July 2025 declined at the fastest pace in more than three years. This is evidenced by S&P Global data, writes Reuters.

The PMI in the Russian industry dropped from 47.5 points in June to 47.0 in July, indicating a decline in production.

According to S&P Global, the decline was caused by weak demand and financial difficulties of customers, which hit production volumes and new orders.

Manufacturers complain about problems with obtaining financing and payments. New domestic orders have been declining for the fourth time in the last five months, and the rate of decline has been the highest since March 2022.

At the same time, export orders rose slightly for the first time in five months, which analysts attribute to increased demand in existing markets.

Although business confidence remains positive, it has fallen to its lowest level since August 2022. The sentiment is affected by economic uncertainty and a decline in customer purchasing power.

After the start of the full-scale invasion of Ukraine, Russian industry was partially supported by the large-scale production of weapons and military equipment.

However, over the past year, growth has slowed, and high interest rates and expensive loans are exacerbating the crisis.

• on July 25, the Central Bank of Russia sharply reduced the interest rate due to the risk of recession.
• The Foreign Intelligence Service of Ukraine expects that the Russian economy will start to collapse by the end of 2025 under pressure from sanctions and military spending.