MOSCOW, May 4 (Reuters) - Russia's manufacturing sector contracted for the 11th month running in April as output and new orders fell again and employment posted its sharpest drop in four years, a business survey showed on Monday.
The S&P Global Russia Manufacturing Purchasing Managers' Index (PMI) fell to 48.1 in April from 48.3 in March. The 50 mark separates growth from contraction.
Output fell for the 14th straight month, with firms linking lower production to weak demand and reduced new order inflows.
The pace of decline eased from March but remained solid overall.
New orders also declined for the 11th consecutive month, though the rate of contraction slowed slightly. Export orders fell again, with firms citing weaker business from neighbouring markets, but that drop was only marginal.
Employment fell for a fifth month and at the sharpest pace in four years, as firms did not replace voluntary leavers and some staff left after working hours were reduced. Backlogs shrank at the fastest rate in a year.
Price pressures intensified. Input costs rose at the second-fastest pace since February 2025 after a VAT-driven spike this January, while output charges also increased at their quickest rate since February 2025 excluding this January's one-month leap.
Manufacturers were more optimistic about the year-ahead outlook, with confidence rising to its highest since September 2025 on hopes of stronger export demand.
Even so, firms continued to cut purchasing and run down inventories, although those declines softened from March.
(Reporting by Gleb Bryanski; Editing by Hugh Lawson)
