Business confidence falls in Russian extractive industry, unchanged in manufacturing in Oct - Rosstat
MOSCOW. Oct 25 (Interfax) - Business confidence fell in Russia's extractive industry but was unchanged in manufacturing in October, the Federal State Statistics Service (Rosstat) said.
The business confidence index in the Russian extractive sector was minus (-) 1% in October, compared with 0% in September, positive (+) 1% in August and +2% in July. It was 0% in June, -1% in May and +1% in April and March, -1% in February and January.
The index in manufacturing was - 3% in October, as in September, compared with -2% in August, -1% in July, June, May and April, -2% in March and February and -3% in January.
The index in the utilities sector (electricity, gas and steam), where the seasonal factor is of most importance, the index improved to +5% in October from +4% in September from +2% in August from -3% in July from -6% in June, -8% in both May and in April, -7% in March, compared with -5% in February and -2% in January.
The assessment of demand (order portfolio) was -21% in extractive and -30% in manufacturing in October 2017, compared with -21% and -36%, respectively, in October 2016.
Rosstat said the number of managers optimistic about production growth in the next three months exceeded those expecting a drop by 10 percentage points in the extractive industry and 17 pp in manufacturing.
It said 11% of respondents in the extractive sector thought the economic situation at their companies in October was good and 76% satisfactory, and 9% and 75%, respectively, in manufacturing. However the number of pessimistically minded respondents exceeded the number of optimistically minded respondents by 6 pp in the extractive industry and 6 pp in manufacturing.
The survey found that 24% of respondents in the extractive industry and 26% in manufacturing industry expected the economic situation to improve in the next six months. Here, the number of optimistic respondents exceeded the number of pessimistic respondents by 15 pp in the extractive industry and 18 pp in manufacturing.
Respondents reported average capacity utilization at 70% in the extractive industry and at 66% in manufacturing in October, and 86% and 91% of respondents in those two sectors respectively thought capacity would be sufficient to meet demand over the coming six months, while 7% and 10% respectively said there was surplus capacity.
Among factors constraining production growth, respondents mentioned insufficient demand for production on the domestic market, general economic uncertainty and a high level of taxation.