30 Sep 2009 17:38

Business confidence in Russian extractive sector still down - Rosstat

MOSCOW. Sept 30 (Interfax) - The business confidence index for the extractive industry remained at negative 7% in September, the Federal State Statistics Service (Rosstat) said.

The energy resource component of the index fell to grew to zero in September from negative 2% in August, while the non-energy component declined to negative 13% from negative 9%.

The index was compiled from business activity surveys of 438 organizations engaged in the extractive industries.

In the manufacturing industries, the survey of 3,818 organizations found that business confidence improved slightly, to negative 13% from 14%. The lowest level was found in the production of nonmetallic mineral products (negative 27%) and machines and equipment (negative 24%) and the manufacture of vehicles and transportation equipment (negative 22%). The maximum was in the production of leather, leather goods and shoes (positive 1%), coke and petroleum products (0%) and food products (negative 1%).

Among electricity, gas and water production and distribution organizations, the survey of 302 organizations in the sector found that business confidence improved to positive 2% in September from negative 2% in August.

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.