21 October 2013
MNI RUSSIA BUSINESS SENTIMENT
EMBARGOED UNTIL 9.45 A.M. MOSCOW TIME, 21 OCTOBER 2013
MNI Russia Business Indicator Falls to 56.3 in October
from 59.0 in September
Expectations Lowest On Record
The MNI Russia Business Indicator eased in October following a sharp rise in the
previous month, while expectations for the future fell to the lowest level since the
series began in March.
The Business Indicator posted a reading of 56.3 in October, down 4.6% from 59.0 in
the previous month. September saw a large jump of 15.0% in sentiment, having
declined for four consecutive months.
Business conditions in both the manufacturing and service sector fell between
September and October, although remained above the breakeven mark. The
Business Indicator for the construction sector improved in October.
Businesses think conditions will worsen over the next three months, with the
Expectations Indicator falling 14.2% in October to 47.2 from 55.0 in September,
dropping below the breakeven 50 level for the first time in the series’ history.
Russia’s largest companies were less optimistic about the future, marked by a fall in
thirteen of the fifteen Future Expectations indicators in October.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said,
“Business sentiment turned down in October following the pick-up in September. More
worryingly, expectations for the future fell sharply with nearly all indicators declining in
October and nine of them falling to the lowest since the series began in March”.
“The fall is disappointing and raises serious concerns about an economy plagued by
slow growth, weak industrial production, falling investment and poor productivity,” he
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Chief Economist, MNI Indicators
Notes to Editors
Please source all information to MNI Indicators.
MNI Russia Business Sentiment is a monthly poll of Russian business executives at
companies listed on the Moscow Exchange. Companies are a mix of manufacturing,
service, construction and agricultural firms.
Respondents are asked their opinion on whether a particular business activity has
increased, decreased or remained the same compared with the previous month as
well as their expectations for three months ahead, e.g. is Production
higher/same/lower compared with a month ago?
Diffusion indicators are then calculated by adding the percentage share of positive
responses to half the percentage of those respondents reporting no change. An
indicator reading above 50 shows expansion, below 50 indicates contraction and a
result of 50 means no change.
Data is collected through computer aided telephone interviews (CATI) and around 200
companies are surveyed each month.
About MNI Indicators
MNI Indicators, part of Deutsche Börse Group, offers unique macro-economic data
and insight to businesses and the investment community. We produce data and
intelligence that is unbiased, pertinent and responsive. Our data moves markets.
For more information, visit our website at www.mni-indicators.com.
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