Business confidence in Russian extractive, manufacturing industries down in Aug - Rosstat
MOSCOW. Aug 21 (Interfax) - The business confidence index for the Russian extractive sector fell to 5% in August from 8% in July and 9% in June, the Federal State Statistics Service (Rosstat) said.
The index was 7% in April and May, 5% in March, 3% in February and -1% (minus) in January.
In the manufacturing sector, the index fell to 1% in August after rising to 2% in July from 1% in June, 0% in May, 1% in Apri,0% in March, -2% in February and -3% in January.
In the electricity, gas and water production and distribution sector the index rose to 3% in August from minus (-) 2% in July, -10% in June, -4% in May and April, -11% in March, -6% in February and -1% in January.
The 4,600 or so respondents surveyed expect output to increase: the gap between the respondents expecting output to increase in the next three months compared with those expecting output to decline was 22 percentage points in the extractive sector and 25 pp in manufacturing.
Rosstat said 9% of respondents thought the economic situation at their companies was good and 80% satisfactory in the extractive sector, and 9% and 78%, respectively, in manufacturing. Around 26% and 29% of respondents from the respective sectors said they expected the economic situation to improve in the next six months.
Respondents reported average capacity utilization at 64% in July, and more than 80% of respondents thought capacity would be sufficient to meet demand over the coming six months.
Among factors constraining production growth, respondents mentioned a high level of taxation, insufficient demand for production on the domestic market uncertainty in the economic situation and a lack of funds.
The business confidence index is a qualitative indicator based on management reports concerning forecast output, inventories and demand in three basic industries - subsurface resource extraction, processing and electricity, gas and water production and distribution - that anticipates shifts in economic variables. Small business is excluded from the calculation. The indicator is the arithmetical "balance" of the responses to the survey questions concerning expected output and actual demand less current inventories of finished product. The balance of expected output indicates the variation among producers noting an increase or decrease in output. The balance of actual demand less current inventories indicates the variation among producers noting a level above or below normal.
