Business confidence among Russian firms remains solid
The degree of confidence in future business activity is the second-strongest since February 2014.
At +25%, the net balance of firms forecasting growth is down from +28% and signals a slight dip in confidence since February.
Growth expectations are broadly in line with other BRIC economies (+24%), but lower than the global average (+31%).
Optimism regarding future business activity is softer in both the manufacturing and service sectors, with the former signalling the stronger fall in sentiment.
The net balance of manufacturing firms expecting growth is +27%, which is the second-strongest since June 2015.
Service sector firms, meanwhile, indicate the secondhighest level of optimism since February 2014, with the net balance at +25%.
Forecasts for new order growth follow a similar trend to business activity for both goods producers and service providers.
Expectations regarding prices signal greater certainty towards an upturn in cost burdens and output prices over the next 12 months.
The net balance of firms forecasting input price inflation has risen from +26% in February to +33% in June.
Fewer firms also predict a rise in profits in the next year, though the net balance remains positive. ■