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The MNI Russia Business Indicator eased in October following a sharp rise in the previous month, while expectations for the future fell to the lowest level since the series began in March.
The Business Indicator posted a reading of 56.3 in October, down 4.6% from 59.0 in the previous month. September saw a large jump of 15.0% in sentiment, having declined for four consecutive months.
Business conditions in both the manufacturing and service sector fell between September and October, although remained above the breakeven mark. The Business Indicator for the construction sector improved in October.
Businesses think conditions will worsen over the next three months, with the Expectations Indicator falling 14.2% in October to 47.2 from 55.0 in September, dropping below the breakeven 50 level for the first time in the series’ history.
Russia’s largest companies were less optimistic about the future, marked by a fall in thirteen of the fifteen Future Expectations indicators in October.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “Business sentiment turned down in October following the pick-up in September. More worryingly, expectations for the future fell sharply with nearly all indicators declining in October and nine of them falling to the lowest since the series began in March”.
“The fall is disappointing and raises serious concerns about an economy plagued by slow growth, weak industrial production, falling investment and poor productivity,” he added.
