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The MNI Russia Business Indicator declined for the second consecutive month in November, following a sharp rise in September, while expectations for the future hit their lowest level since the series began in March.
The Business Indicator fell 8.5% on the month to 51.5 in November from 56.3 in the previous month, leaving it only just above the series low of 51.3 reported in August.
Business conditions worsened considerably in the construction sector with the current indicator falling into contraction. Optimism among service sector companies also fell while it improved for manufacturing companies.
Businesses believe conditions will continue to worsen over the next three months, with the Expectations Indicator falling to a new series low of 45.0 in November from 47.2 in October.
Companies reported weaker Production and New Orders compared with October and expected conditions to worsen over the coming months.
The Employment Indicator, which measures the amount of labour demand from businesses, fell below 50 for the first time in November to the lowest on record. A higher proportion of businesses reported that they had too many employees.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “Business activity fell sharply in November and companies see conditions worsening over the next few months. The fall in employment, if sustained, will do little to help an economy already struggling to grow.”
“Rather than taking action to tackle many of the deep seated economic problems the country faces, recent comments from officials suggest they are capitulating in the face of weak economic growth with little idea of how to turn the country around,” he added.
