Growth in Russia's investment activity continues in Q1, pace slows - Central Bank

MOSCOW. April 16 (Interfax) - Growth in Russian companies' investment activity continued in the first quarter of 2025, though the pace slowed quarter-on-quarter, the Central Bank of Russia's (CBR) business monitoring showed.

Investment slowed in most sectors, particularly in trade of automobiles. But investment growth accelerated in agriculture, electricity and water supply.

"Among factors limiting investment activity, the influence of uncertainty about the economic situation and the level of interest rates on investment loans increased significantly," the CBR said.

Companies expect that investment will grow at the same pace in the second quarter as in the first quarter. Manufacturing businesses that produce intermediate goods had the highest estimates for investment activity in the second quarter, while businesses in construction had the lowest and saw the steepest decrease.

Capacity utilization in the first quarter of 2025 decreased to values slightly below the highs of 2023-2024. This indicator decreased in almost all sectors, particularly in trade and construction. Companies that extract mineral resources reported an increase in capacity utilization.

Staffing in the first quarter was close to the lowest figure on record. Companies' hiring expectations for the second quarter of 2025 increased and returned to the values of the second quarter of 2024.