Over the last twelve months, activity and optimism in Russia’s industrial sector have surged to their highest levels, marking a notable shift in expectations. After the introduction of international sanctions earlier this year, a survey conducted by analysts from the Economic Policy Institute named after Yegor Gaidar found that 61 percent of local companies report satisfaction with current demand for their products. This reading, reported by RBC, signals that many firms feel they are operating in a favorable environment despite external pressures and market uncertainty.
The same study highlights that the indicator measuring how sales are realized remains strong. In February, 61 percent of respondents described current demand as satisfactory, a share that aligns with or surpasses what is seen in quieter, more stable years. This suggests a persistent confidence among manufacturers about the immediate outlook for their sales volumes, even amid geopolitical and economic headwinds.
Nevertheless, the pace of actual demand changes for goods produced by Russia’s industrial base shows only marginal movement, hovering near zero. The Economic Policy Institute notes that this measure stands at its highest level since the escalation of the Ukraine conflict began in late February 2022, underscoring a cautious but resilient demand dynamic within the sector.
In more detailed terms, current demand shifts are limited but nonnegative, reflecting a stabilization after a period of volatility. During 2021 and the post-pandemic recovery phase, the related index traded in positive territory until February 2022, but the recent readings reveal a different pattern: February 2023 registered the strongest level since late February 2022, even exceeding the performance seen during non-crisis years around 2018–2019.
On the other side of the market picture, S&P Global analysts released findings at the start of March indicating that the February PMI for Russia’s industrial sector reached its highest point in six years, coming in at 53.6. This marks an improvement from January’s 52.6, suggesting expanding activity and a brighter near-term trajectory for manufacturing and related industries.