30 Dec 2009 15:42

Business confidence in Russian extractive, manufacturing sectors still down - Rosstat

MOSCOW. Dec 30 (Interfax) - The business confidence index for the extractive industry fell to negative 13% from negative 12% in December, the Federal State Statistics Service (Rosstat) said.

The energy resource component of the index fell from positive 2% in November to negative 2% in December, while the non-energy component was unchanged at negative 22%.

The index was compiled from business activity surveys of 436 organizations engaged in the extractive industries.

In the manufacturing industries, the survey of 3,805 organizations found that business confidence was unchanged at negative 15%. The lowest level was found in the production of nonmetallic mineral products (negative 30%), machines and equipment (negative 25%) and the manufacture of vehicles and transportation equipment (negative 23%). The maximum was in the production of leather, leather goods and shoes (positive 4%) and coke and petroleum products (positive 2%).

Among electricity, gas and water production and distribution organizations, the survey of 299 organizations in the sector found that business confidence deteriorated to zero from positive 2%.

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.