Business confidence falls in Russian extractive industry for 3rd straight month in Oct - Rosstat
MOSCOW. Oct 26 (Interfax) - Business confidence in Russia's extractive industry fell for the third straight month in October, the Federal State Statistics Service (Rosstat) said.
The index for the manufacturing sector also declined after holding steady in September.
The business confidence index in the Russian extractive sector fell to minus (-)3% in October, from -1% in September, positive (+)1% in August and +2% in July and June, where it rose from -1% in May, -2% in April, -3% in March, -4% in February, and -6% in January.
The index in manufacturing in October declined to -6%, from -5% in September and August, when it worsened from -3% in July, -4% in June, May and April, -5% in March and February, and -7% in January.
In the utilities sector (electricity, gas and water) the index rose in October to +8% from +6% in September, +2% in August, -4% in July, -10% in June, -13% in May, -12% in April, -9% in March, -6% in February, and -2% in January.
Rosstat said 9% of respondents surveyed thought the economic situation at their companies in October was good and 72% satisfactory in the extractive sector, and 7% and 76%, respectively, in manufacturing.
Around 16% of respondents in the extractive industry and 22% of respondents in the manufacturing industry expect the economic situation to improve in the next six months. The number of optimistically minded respondents exceeded the number of pessimistic respondents by 9 pp in the extractive industry and 11 pp in manufacturing.
Respondents reported average capacity utilization at 64% in October, and 91% of respondents thought capacity would be sufficient to meet demand over the coming six months, while 12% of them said there was surplus capacity.
Among factors constraining production growth, respondents mentioned a high level of taxation, insufficient demand for production on the domestic market and general economic uncertainty.