The MNI Russia Consumer Indicator rose 2.0 points in July to 91.1 after hitting a record low in May, but remains below year-ago levels. Consumers felt better about current finances but were downbeat on the future economy. High inflation remains a key concern despite a slight easing in expectations. Tighter monetary policy and new sanctions will likely weaken growth and sentiment going forward.
UK retail sales in Q1 likely contracted from Q4 2016, despite their rebound in February.
Falling real wages and slowing household borrowing are likely to further dampen retail sales and consumption growth going forward.
The still large pool of available workers is seemingly limiting their wage-bargaining power, with nominal wage growth falling behind rising inflation.
Moreover, investment growth is still only making a negligible contribution to GDP growth ahead of the British government’s decision to trigger Article 50 on 29th March.
Much of the rise in inflation in recent months is attributable to imported inflation driven by Sterling’s depreciation since November 2015 with little evidence of demand-led inflation.
This situation is reminiscent of 2007-2008 when Sterling’s collapse fuelled imported and in turn headline inflation.
Should Sterling remain broadly unchanged going forward, its year-on-year pace of depreciation, currently around 9%, would slow from June onwards and hit zero towards end-year according to my estimates, in turn dampening imported inflation.
I would expect retailers to stabilise prices to maintain market share in the face of tepid demand and for wage-inflation expectations to remain modest. This was certainly the case in the 12 months to September 2009 with CPI-inflation falling from 5.2% yoy to 1.1% yoy.
The question is whether the BoE is willing to look beyond a potentially temporary rise in UK inflation – as Governor Mark Carney suggested – or whether it tries to short-circuit any self-reinforcing rise in prices.
My base-line scenario is that the BoE will look beyond the current rise in UK inflation, unless at least one of three conditions materialise:
(1) Nominal wage growth accelerates, comfortably outstripping headline inflation and driving consumption growth;
(2) Commercial bank lending picks up significantly; and
(3) Sterling depreciates materially from current levels, exacerbating imported and in turn headline inflation.
I expect that neither (1) or (2) will materialise any time soon and that while risks to Sterling are probably to the downside, Sterling is unlikely to weaken sufficiently to push the BoE into hiking. I would however expect it to keep a possible rate hike firmly on the table.
Slight optimism outshines numerous challenges
As 2016 rolls to a close, the Ukrainian economy is finding stronger footing. The pace of recovery remains slow, but it looks sustainable and the chances of a meaningful acceleration in 2017 are high. Inflation is still in the high single digits, but a hike in regulated utility tariffs should boost it to near the NBU’s 12% target by year-end. The FX market is nearly balanced and the NBU is taking advantage of slight surpluses to replenish reserves. Ukraine’s external accounts look reasonably strong but they still pose a risk to the economy; any external shock could trigger market jitters. Smooth relations with the IMF and other IFIs remain a key precondition for the recovery of investor and domestic consumer confidence.
The MNI Russia Consumer Indicator increased for the second consecutive month in January to the highest level since October, partially fuelled by the upcoming Sochi Winter Olympics. The Consumer Indicator rose to 99.3 in January from 95.7 in December, close to the breakeven 100 level which separates weakness from strength.
UK retail sales in Q1 likely contracted from Q4 2016, despite their rebound in February.
Falling real wages and slowing household borrowing are likely to further dampen retail sales and consumption growth going forward.
The still large pool of available workers is seemingly limiting their wage-bargaining power, with nominal wage growth falling behind rising inflation.
Moreover, investment growth is still only making a negligible contribution to GDP growth ahead of the British government’s decision to trigger Article 50 on 29th March.
Much of the rise in inflation in recent months is attributable to imported inflation driven by Sterling’s depreciation since November 2015 with little evidence of demand-led inflation.
This situation is reminiscent of 2007-2008 when Sterling’s collapse fuelled imported and in turn headline inflation.
Should Sterling remain broadly unchanged going forward, its year-on-year pace of depreciation, currently around 9%, would slow from June onwards and hit zero towards end-year according to my estimates, in turn dampening imported inflation.
I would expect retailers to stabilise prices to maintain market share in the face of tepid demand and for wage-inflation expectations to remain modest. This was certainly the case in the 12 months to September 2009 with CPI-inflation falling from 5.2% yoy to 1.1% yoy.
The question is whether the BoE is willing to look beyond a potentially temporary rise in UK inflation – as Governor Mark Carney suggested – or whether it tries to short-circuit any self-reinforcing rise in prices.
My base-line scenario is that the BoE will look beyond the current rise in UK inflation, unless at least one of three conditions materialise:
(1) Nominal wage growth accelerates, comfortably outstripping headline inflation and driving consumption growth;
(2) Commercial bank lending picks up significantly; and
(3) Sterling depreciates materially from current levels, exacerbating imported and in turn headline inflation.
I expect that neither (1) or (2) will materialise any time soon and that while risks to Sterling are probably to the downside, Sterling is unlikely to weaken sufficiently to push the BoE into hiking. I would however expect it to keep a possible rate hike firmly on the table.
Slight optimism outshines numerous challenges
As 2016 rolls to a close, the Ukrainian economy is finding stronger footing. The pace of recovery remains slow, but it looks sustainable and the chances of a meaningful acceleration in 2017 are high. Inflation is still in the high single digits, but a hike in regulated utility tariffs should boost it to near the NBU’s 12% target by year-end. The FX market is nearly balanced and the NBU is taking advantage of slight surpluses to replenish reserves. Ukraine’s external accounts look reasonably strong but they still pose a risk to the economy; any external shock could trigger market jitters. Smooth relations with the IMF and other IFIs remain a key precondition for the recovery of investor and domestic consumer confidence.
The MNI Russia Consumer Indicator increased for the second consecutive month in January to the highest level since October, partially fuelled by the upcoming Sochi Winter Olympics. The Consumer Indicator rose to 99.3 in January from 95.7 in December, close to the breakeven 100 level which separates weakness from strength.
So far Sterling and Japanese and European equity markets have borne the brunt of the initial shock, while the FTSE is down only 3.3% since Thursday and most major and emerging market currencies have been reasonably well behaved (see Figure 1).
But there are still far many more questions than answers and the situation remains extremely fluid.
For starters there is no precedent for a country leaving the EU and thus no clear-cut rulebook to rely on. The government has limited institutional capacity to start negotiations with the UK’s 27 EU partners until Article 50 of the Lisbon Treaty is triggered and no timeline has been provided for when this will happen (assuming it is triggered at all).
Perhaps unsurprisingly given the mammoth task ahead, the Leave campaign leaders have been very short on specifics regarding the mechanics and timing of the UK’s exit from the EU, the likely shape of future trade treaties and national policies such as immigration. Prime Minister Cameron’s de-facto resignation and wholesale changes in personnel in the opposition Labour Party are adding to the head-scratching.
Moreover, it is not one country seeking to leave the EU, but a union of four countries – England, Wales, Scotland and Northern Ireland – which further complicates matters as both Scotland and Northern Ireland seem intent on remaining part of the EU and potentially breaking free from the UK.
At this point in time, all we can do is take stock of what we know (or at least we think we know) and what we don’t know (but can tentatively try to forecast).
I would conclude, as I did in Europe – the Final Countdown (21 June 2016), that the many layers of political, legal, economic and financial uncertainty are likely to keep UK investment, consumption and employment, as well as Sterling on the back-foot for months to come. Financial market volatility is also likely to remain elevated in coming weeks.
In this context the US Federal Reserve is likely to keep rates on hold in coming months and the European Central Bank can probably afford to do little for the time being. The Bank of England is likely to seriously contemplate cutting its policy rate while the Bank of Japan will be under renewed pressure to curb soaring Yen strength.
Of course, British policy-makers and business associations have come out and said the right things in order to limit the carnage and contagion. But they have far more limited room to reflate the economy and fade gyrations in financial markets than they did during the 2008-2009 great financial crisis. They are not in control at this juncture and it is not obvious who is.
The rise in bond yields in developed economies in the past 6 weeks remains one of the over-riding themes as we head into the last seven days of the US presidential campaigns.
Markets are now fretting about the implications for global growth and asset valuations and ultimately whether elevated global risk appetite will correct more forcefully.
Higher international commodity prices, a pick-up in global GDP growth in Q3 and early Q4 and easing deflation fears suggest that interest rate policies in developed economies may have reached an important inflexion point – in line with the view I expressed six weeks ago.
Developed central banks may refrain from loosening monetary policy further near-term, with the exception of the RBNZ and possibly ECB. At the very least, policy-makers will tweak a discourse which has largely focused on doing “whatever it takes”.
Recent US data have paved the paved the way for a 14th December Fed hike, conditional on Democrat candidate Hilary Clinton wining the 8th November US presidential elections.
But with the exception of the Fed and possibly a handful of EM central banks, rate hikes are a story for the latter part of 2017 (perhaps) while further rate cuts remain on the cards in Brazil, Russia, Indonesia and India.
Higher global yields and still uncertain US election outcome are taming global equities and volatility has spiked but EM currencies have still managed to eek out modest gains.
Assuming Hilary Clinton wins next week, I would expect the initial reaction to be a rally in global equities, EM currencies and Dollar and an underperformance of safe-haven assets.
But I would also expect market pricing for a December Fed hike to rise a little further, which could in turn eventually curtail any rally in global equities and EM currencies.
In this scenario, the Dollar would likely end the year stronger, as per my January forecast of a third consecutive year of albeit more modest Dollar gains.
Whether global risk appetite avoids its early 2016 fate will depend on the interconnected factors of underlying macro data and the Fed’s credibility. In any case, market volatility could spike in the run-up to March 2017.
The self-reinforcing sell-off in Sterling and UK bonds has only very recently abated, with markets seemingly taken some comfort from a number of factors including the only modest slowdown in UK GDP growth to 0.5% qoq in Q3.
But optimism over UK GDP data is not warranted as growth has become more unbalanced and slowed in August-September despite a significant easing in UK monetary policy.
From ELANA Trading: Macroeconomic and Market Outlook 2015 „Bulgaria: Back on ...ELANA Group
This research report offers a thorough view on the major macroeconomic trends in Bulgaria, looking also into all internal and external factors such as crisis in Russia and Ukraine, as well as Greece turmoil. The outlook includes a snapshot of the Bulgarian stock market and its movers & shakers as well as ELANA Trading analysts top picks.
Some analysts points:
- We are cautious for 2015, but looking for a GDP growth pick up in 2016.
- Factors to watch during in 2015 would be the first decisive moves for reforms of the new coalition government, Greece and the crisis in Ukraine.
- The recent capital market decline provides good buying opportunities in various sectors as banks and financial services, electrical equipment, pharmaceuticals, etc.
- Upcoming IT IPO to boost market vitality.
The MNI Russia Consumer Indicator increased for the second consecutive month in January to the highest level since October, partially fuelled by the upcoming Sochi Winter Olympics. The Consumer Indicator rose to 99.3 in January from 95.7 in December, close to the breakeven 100 level which separates weakness from strength.
Ivo Pezzuto - FEDERAL RESERVE'S RATE RISE. COMING SOON? The Global Analyst Se...Dr. Ivo Pezzuto
This article, written on August 31st, 2015 by Prof. Ivo Pezzuto, predicts that mostly likely the Federal Reserve will hike interest rates at the December 16th-17th FOMC meeting, given the current global economic turbulence and outlook, and that a rate rise will be more likely at the end of 2015 or in early 2016 if the US economy will continue to improve and in the absence of systemic crises.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
The SVB Asset Management Economic Report, Q2 2017, is a review of and outlook on economic factors that impact global markets and business health.
In this edition, the team discusses the U.K.’s Article 50 notice and the FOMC’s current path towards normalization. The report also examines the Trump Administration’s first 100 days in office and current business sentiment.
Ukraine Monthly Economic Review, September 2017 DIXI Group
Highlights
In September, Ukraine returned to the Eurobond market, issuing USD 3 bn with a maturity of 15 years at a yield of 7.375%. The return to the market happened amidst a highly supportive global market environment, but also due to regained financial stability and reform progress at home. As Ukraine repurchased outstanding bond issues due in 2019 and 2020, repayment risks have fallen.
Ukraine adopted a juridical and a pension reform in Parliament, which should accelerate the approval of another IMF loan tranche. Now much depends on the implementation of these reforms. However, a land reform has been postponed, which might reduce the amount of a prospective IMF payout.
Healthy economic growth continued: GDP increased by 2.3% yoy and 0.6% qoq in the second quarter on a cyclical rebound in private household demand and a surge in investment from low levels. The economic blockade in Donbas hit less than expected, opening an upside to our cautious GDP estimate of 1.5% growth for this year.
Inflation remained at an elevated level of 16.2% yoy in August, but with a negligible mom decline from July. Nevertheless, the higher than anticipated inflation kept the NBU from lowering further the key rate. With some fiscal loosening ahead, the NBU might even switch into reverse gear and tighten policy, i.e. hike the rate in coming months (in case of growing inflationary risks).
The UAH lost some of its strength on seasonal factors moving higher to USD/UAH 26.60. Further depreciation risks are partly mitigated by the improved external financing situation given the recent bond issue.
Ukraine Monthly Economic Review, August 2017DIXI Group
Highlights
Given the expectation of improved debt dynamics on the back of structural reforms, Moody’s has upgraded Ukraine’s sovereign rating from Caa3 to Caa2 and changed the outlook to “positive” from “stable”. The rating change is a positive event supporting Ukraine in the intent to return to the market. We expect Ukraine to issue Eurobonds this fall after the finalization of the IMF review.
Ukraine’s economy grew by 2.4% yoy in Q2 after +2.5% yoy in Q1, whereas in seasonally adjusted terms growth amounted to 0.6% qoq. This has been better than we had anticipated. Growth has likely been driven by private household demand, but also investment dynamics improved considerably. We estimate economic growth of at least 1.5% yoy in 2017, with upside risks to this forecast.
Industrial production declined by 2.6% yoy in July owing to a downturn in the mining and energy sector, while the expansion of retail sales slowed down – from 9% yoy in June to 6.8% yoy in July. In July, the growth of consumer price index (CPI) slowed down to 0.2% mom from 1.6% mom, but due to the base effect, inflation accelerated from 15.6% yoy to 15.9% yoy.
UAH strengthening persisted in most of August against the backdrop of significant tax payments that reduced LCY liquidity and forced exporters to sell more FCY. Nevertheless, most recently devaluation pressures emerged. We remain cautious, and keep our year-end USD/UAH forecast at 28.00 (eop) for the time being. Meanwhile, the liberalization of the FX market by removing administrative measures kept going.
Monthly Newsletter on key sectors of Pakistan Economy with updates on Money Market and Pakistan Stock Exchange (PSX) and latest numbers of Inflation, Current and Fiscal Account.
The MNI Russia Consumer Indicator fell sharply in November, led by a steep decline in respondents’ willingness to purchase a large household item and their expectations for future business conditions.
So far Sterling and Japanese and European equity markets have borne the brunt of the initial shock, while the FTSE is down only 3.3% since Thursday and most major and emerging market currencies have been reasonably well behaved (see Figure 1).
But there are still far many more questions than answers and the situation remains extremely fluid.
For starters there is no precedent for a country leaving the EU and thus no clear-cut rulebook to rely on. The government has limited institutional capacity to start negotiations with the UK’s 27 EU partners until Article 50 of the Lisbon Treaty is triggered and no timeline has been provided for when this will happen (assuming it is triggered at all).
Perhaps unsurprisingly given the mammoth task ahead, the Leave campaign leaders have been very short on specifics regarding the mechanics and timing of the UK’s exit from the EU, the likely shape of future trade treaties and national policies such as immigration. Prime Minister Cameron’s de-facto resignation and wholesale changes in personnel in the opposition Labour Party are adding to the head-scratching.
Moreover, it is not one country seeking to leave the EU, but a union of four countries – England, Wales, Scotland and Northern Ireland – which further complicates matters as both Scotland and Northern Ireland seem intent on remaining part of the EU and potentially breaking free from the UK.
At this point in time, all we can do is take stock of what we know (or at least we think we know) and what we don’t know (but can tentatively try to forecast).
I would conclude, as I did in Europe – the Final Countdown (21 June 2016), that the many layers of political, legal, economic and financial uncertainty are likely to keep UK investment, consumption and employment, as well as Sterling on the back-foot for months to come. Financial market volatility is also likely to remain elevated in coming weeks.
In this context the US Federal Reserve is likely to keep rates on hold in coming months and the European Central Bank can probably afford to do little for the time being. The Bank of England is likely to seriously contemplate cutting its policy rate while the Bank of Japan will be under renewed pressure to curb soaring Yen strength.
Of course, British policy-makers and business associations have come out and said the right things in order to limit the carnage and contagion. But they have far more limited room to reflate the economy and fade gyrations in financial markets than they did during the 2008-2009 great financial crisis. They are not in control at this juncture and it is not obvious who is.
The rise in bond yields in developed economies in the past 6 weeks remains one of the over-riding themes as we head into the last seven days of the US presidential campaigns.
Markets are now fretting about the implications for global growth and asset valuations and ultimately whether elevated global risk appetite will correct more forcefully.
Higher international commodity prices, a pick-up in global GDP growth in Q3 and early Q4 and easing deflation fears suggest that interest rate policies in developed economies may have reached an important inflexion point – in line with the view I expressed six weeks ago.
Developed central banks may refrain from loosening monetary policy further near-term, with the exception of the RBNZ and possibly ECB. At the very least, policy-makers will tweak a discourse which has largely focused on doing “whatever it takes”.
Recent US data have paved the paved the way for a 14th December Fed hike, conditional on Democrat candidate Hilary Clinton wining the 8th November US presidential elections.
But with the exception of the Fed and possibly a handful of EM central banks, rate hikes are a story for the latter part of 2017 (perhaps) while further rate cuts remain on the cards in Brazil, Russia, Indonesia and India.
Higher global yields and still uncertain US election outcome are taming global equities and volatility has spiked but EM currencies have still managed to eek out modest gains.
Assuming Hilary Clinton wins next week, I would expect the initial reaction to be a rally in global equities, EM currencies and Dollar and an underperformance of safe-haven assets.
But I would also expect market pricing for a December Fed hike to rise a little further, which could in turn eventually curtail any rally in global equities and EM currencies.
In this scenario, the Dollar would likely end the year stronger, as per my January forecast of a third consecutive year of albeit more modest Dollar gains.
Whether global risk appetite avoids its early 2016 fate will depend on the interconnected factors of underlying macro data and the Fed’s credibility. In any case, market volatility could spike in the run-up to March 2017.
The self-reinforcing sell-off in Sterling and UK bonds has only very recently abated, with markets seemingly taken some comfort from a number of factors including the only modest slowdown in UK GDP growth to 0.5% qoq in Q3.
But optimism over UK GDP data is not warranted as growth has become more unbalanced and slowed in August-September despite a significant easing in UK monetary policy.
From ELANA Trading: Macroeconomic and Market Outlook 2015 „Bulgaria: Back on ...ELANA Group
This research report offers a thorough view on the major macroeconomic trends in Bulgaria, looking also into all internal and external factors such as crisis in Russia and Ukraine, as well as Greece turmoil. The outlook includes a snapshot of the Bulgarian stock market and its movers & shakers as well as ELANA Trading analysts top picks.
Some analysts points:
- We are cautious for 2015, but looking for a GDP growth pick up in 2016.
- Factors to watch during in 2015 would be the first decisive moves for reforms of the new coalition government, Greece and the crisis in Ukraine.
- The recent capital market decline provides good buying opportunities in various sectors as banks and financial services, electrical equipment, pharmaceuticals, etc.
- Upcoming IT IPO to boost market vitality.
The MNI Russia Consumer Indicator increased for the second consecutive month in January to the highest level since October, partially fuelled by the upcoming Sochi Winter Olympics. The Consumer Indicator rose to 99.3 in January from 95.7 in December, close to the breakeven 100 level which separates weakness from strength.
Ivo Pezzuto - FEDERAL RESERVE'S RATE RISE. COMING SOON? The Global Analyst Se...Dr. Ivo Pezzuto
This article, written on August 31st, 2015 by Prof. Ivo Pezzuto, predicts that mostly likely the Federal Reserve will hike interest rates at the December 16th-17th FOMC meeting, given the current global economic turbulence and outlook, and that a rate rise will be more likely at the end of 2015 or in early 2016 if the US economy will continue to improve and in the absence of systemic crises.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
The SVB Asset Management Economic Report, Q2 2017, is a review of and outlook on economic factors that impact global markets and business health.
In this edition, the team discusses the U.K.’s Article 50 notice and the FOMC’s current path towards normalization. The report also examines the Trump Administration’s first 100 days in office and current business sentiment.
Ukraine Monthly Economic Review, September 2017 DIXI Group
Highlights
In September, Ukraine returned to the Eurobond market, issuing USD 3 bn with a maturity of 15 years at a yield of 7.375%. The return to the market happened amidst a highly supportive global market environment, but also due to regained financial stability and reform progress at home. As Ukraine repurchased outstanding bond issues due in 2019 and 2020, repayment risks have fallen.
Ukraine adopted a juridical and a pension reform in Parliament, which should accelerate the approval of another IMF loan tranche. Now much depends on the implementation of these reforms. However, a land reform has been postponed, which might reduce the amount of a prospective IMF payout.
Healthy economic growth continued: GDP increased by 2.3% yoy and 0.6% qoq in the second quarter on a cyclical rebound in private household demand and a surge in investment from low levels. The economic blockade in Donbas hit less than expected, opening an upside to our cautious GDP estimate of 1.5% growth for this year.
Inflation remained at an elevated level of 16.2% yoy in August, but with a negligible mom decline from July. Nevertheless, the higher than anticipated inflation kept the NBU from lowering further the key rate. With some fiscal loosening ahead, the NBU might even switch into reverse gear and tighten policy, i.e. hike the rate in coming months (in case of growing inflationary risks).
The UAH lost some of its strength on seasonal factors moving higher to USD/UAH 26.60. Further depreciation risks are partly mitigated by the improved external financing situation given the recent bond issue.
Ukraine Monthly Economic Review, August 2017DIXI Group
Highlights
Given the expectation of improved debt dynamics on the back of structural reforms, Moody’s has upgraded Ukraine’s sovereign rating from Caa3 to Caa2 and changed the outlook to “positive” from “stable”. The rating change is a positive event supporting Ukraine in the intent to return to the market. We expect Ukraine to issue Eurobonds this fall after the finalization of the IMF review.
Ukraine’s economy grew by 2.4% yoy in Q2 after +2.5% yoy in Q1, whereas in seasonally adjusted terms growth amounted to 0.6% qoq. This has been better than we had anticipated. Growth has likely been driven by private household demand, but also investment dynamics improved considerably. We estimate economic growth of at least 1.5% yoy in 2017, with upside risks to this forecast.
Industrial production declined by 2.6% yoy in July owing to a downturn in the mining and energy sector, while the expansion of retail sales slowed down – from 9% yoy in June to 6.8% yoy in July. In July, the growth of consumer price index (CPI) slowed down to 0.2% mom from 1.6% mom, but due to the base effect, inflation accelerated from 15.6% yoy to 15.9% yoy.
UAH strengthening persisted in most of August against the backdrop of significant tax payments that reduced LCY liquidity and forced exporters to sell more FCY. Nevertheless, most recently devaluation pressures emerged. We remain cautious, and keep our year-end USD/UAH forecast at 28.00 (eop) for the time being. Meanwhile, the liberalization of the FX market by removing administrative measures kept going.
Monthly Newsletter on key sectors of Pakistan Economy with updates on Money Market and Pakistan Stock Exchange (PSX) and latest numbers of Inflation, Current and Fiscal Account.
The MNI Russia Consumer Indicator fell sharply in November, led by a steep decline in respondents’ willingness to purchase a large household item and their expectations for future business conditions.
8 JANUARY 2014 . MNI Russia Consumer Indicator rises to 95.7 in December from 94.8 in November. Consumer Confidence Remains Low. The MNI Russia Consumer Indicator increased slightly in December, having hit a series low in November. Confidence remained weak amid continued concerns over inflation, personal finances and a gloomy business outlook.
Russia Business confidence up ahead of Sochi Olympics as the MNI Russia Business Indicator Rises to 57.9 in January from a Record Low of 45.5 in December
London, 22 November 2013 MNI RUSSIA BUSINESS SENTIMENT EMBARGOED UNTIL 9.45 A.M. MOSCOW TIME. MNI Russia Business Indicator Falls to 51.5 In November from 56.3 in October. Future Expectations Hit A New Low. The MNI Russia Business Indicator declined for the second consecutive month, while expectations for the future hit their lowest level since the series began in March.
London, 24 December 2013. The MNI India Business Indicator fell to 57.8 in December from 64.6 in November, the lowest since July. Eleven out of 15 current conditions indicators fell, a disappointing end to what has been a tough year for businesses.
The MNI Russia Business Sentiment provides insight into the Russian economy. Based on a monthly poll of business executives, it tracks and predicts Russian economic conditions.
The MNI Russia Consumer Sentiment provides reliable and in-depth analysis of consumer behaviours within the rapidly changing Russian economy. We provide timely intelligence on the state of an important strategic market.
MNI Russia Consumer Indicator Falls to 94.1 in February from 99.3 in January.
The MNI Russia Consumer Indicator declined to the lowest level since the survey started in March 2013, led by a sharp fall in consumers’ views about the current state of their personal finances, with not even the winter games able to boost sentiment.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
After the uncertainty of the Brexit verdict got over, the market rallied in the last week. The market got off on the
wrong foot on the day of the Referendum results and corrected by almost 1000 points. But the market soon
realized that the renewal in trade agreement between UK and Euro is not going to happen anytime soon and it will
take around 1-2 years. India being an emerging nation, the impact of this event is quite limited. After this the
market resumed its upt uptrend. Since budget, the nifty is up by 1000 points, and in percentage terms it has gained
22%. We should remember that it is still 10% off of the it’s all time high, which was achieved in March 2015.
• Despite the fact that the PE multiple of the Indian Markets is 17 – 18 times, the FIIs continue to invest in India on
account of better growth prospects, better earning visibility. India is the only trillion dollar economy which is
growing on 7.5%, which makes it a lucrative long term story.
Diaporama utilisé par Vincent Juvyns, stratégiste des marchés chez JP Morgan Asset Management, lors du webinaire qu'il a animé pour le Forum financier, le 12 octobre 2020.
The Chicago Business Barometer made a positive start to the third quarter, jumping above 50 after two
months in contraction, leaving economic activity expanding at the fastest pace since January.
The Chicago Business Barometer fell 5.4 points to 60.8 in November from a one year high of 66.2 in October driven by a double digit drop in New Orders.
Embargoed until 9:45 a.m. ET, 30 September 2014 The Chicago Business Barometer decreased 3.8 points to a still robust 60.5 in September, as Production and New Orders slowed while fims reported a record rise in stocks and a sharp increase in input prices.
Embargoed until 9:45 AM ET, 29 August 2014 The Chicago Business Barometer surged 11.7 points to 64.3 in August, regaining all the lost ground seen in July, and pointing to continued strength in the US economy.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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3. 3MNI Russia Consumer Report - July 2014
MNI Russia Consumer Report - July 2014
Contents
4 Editorial
6 Executive Summary
12 Economic Landscape
16 Indicators
17 MNI Russia Consumer Indicator
24 Personal Finances
26 Business Conditions
29 Durable Buying Conditions
30 Employment Outlook
31 Prices Sentiment
34 Interest Rates Expectations
35 Real Estate Investment
38 Car Purchase
40 Consumer Indicator - Regions
43 Consumer Indicator - Income Groups
44 What the Panel Said
46 Data Tables
54 Methodology
4. Spitzzeile Titel4
It’s been a momentous time for the BRICS with the
annual summit in Brazil last month culminating in
the announcement of a new development bank to
potentially rival the existing multinational institutions
of the World Bank and the IMF.
BRICS Building
5. 5MNI Russia Consumer Report - July 2014
It’s been a momentous time for the BRICS with the
annual summit in Brazil last month culminating in the
announcement of a new development bank to
potentially rival the existing multinational institutions
of the World Bank and the IMF.
The BRICS development bank, or New Development
Bank, as it is named has been a long time coming,
with the idea aired back in 2009. It’s not difficult to
see why the five nations of the BRICS want to set-up
a new bank – both the World Bank and the IMF are
criticised for representing western interests too
greatly. For example, the US gets a disproportionate
amount of votes at the World Bank. And developing
nations feel they have to meet overbearing conditions
for credit lines.
The BRICS themselves are a rather disparate group of
nations, lumped together by their size and capacity
for growth, rather than their aligned political, social
and economic goals. Russia, Brazil and South Africa
export commodities, while China exports manufactured
goods and India exports services. They have recently
disagreed among themselves over WTO decisions and
failed to unite on issues such as Ukraine or China
throwing its weight around in the South China Sea. All
this said, the New Development Bank does mark a
significant step for the BRICS and shows that in spite
of some individual disagreements, there is a greater
will to ensure that developing economies have their
say. Indeed the bank could become a key symbol for
emerging markets. Notably the new bank is not going
to be called the BRICS development bank, a sign that
it will lend not only to the BRICS, but also other
developing nations. This also keeps the door open for
new members at a later date as well, something that
is likely needed if the bank is to rival the World Bank
in the future.
For Russia, the formation of the BRICS bank is a
perfect opportunity for President Putin to once again
show the West that it is not as dependent on them as
they might believe. Just two months ago, Russia
signed a historic 30 year deal worth $400 billion for
its state run gas producer Gazprom to supply natural
gas to China, a strategically planned decision to
reduce its dependence from its existing EU trade
partners.
While the amount of capital the bank will raise is far
less than the World Bank, that doesn’t mean it won’t
have an impact, although it will take considerable
time to build up into anything meaningful. As well as
$100 billion in capital there will be an equally sized
“Contingency Reserve Arrangement”, an emergency
fund in the style of the IMF to help protect countries
against currency crises and short-term liquidity
requirements. Russia would be wise to try and de-
escalate the situation in Ukraine or it won’t be long
before it is the first beneficiary of the bank!
Philip Uglow
Chief Economist
MNI Indicators
6. MNI China Consumer Report - July 20136
Russian consumer sentiment increased for the
second consecutive month after hitting a record
low in May, although it still remains well below the
levels seen at the start of the year prior to the
annexation of Crimea.
Executive Summary
7. 7MNI Russia Consumer Report - July 2014
Russian consumer sentiment increased for the second
consecutive month after hitting a record low in May,
although it still remains well below the levels seen at
the start of the year prior to the annexation of Crimea.
The MNI Russia Consumer Indicator rose 2.0 points
on the month to 91.1 in July from 89.1 in June.
Consumer sentiment has severely dented since the
onset of the Ukraine crisis, with confidence now
standing 8.4% below the level seen a year earlier.
While it looks like the Russian economy may have
escaped falling into recession in Q2, there has been
little to cheer about. The Russian central bank raised
its benchmark interest rate by 50 basis points to 8%
from 7.5% towards the end of July, to control inflation,
the third increase since the start of the year.
The downing of a Malaysia Airlines flight MH17, which
occurred after our survey was conducted, resulted in
a ratcheting up in sanctions from both the EU and US
against Russia’s finance, energy and weapons
industries. The new sanctions will restrict Russian
state-owned banks from accessing European and
American capital markets and reduce the export of
oil-related equipment, military arms and technology
to Russia.
Tighter monetary policy and the impact of sanctions
will no doubt have a negative impact on both growth
and consumer sentiment over the coming months.
In July, consumers felt significantly better about their
current economic circumstances, although remained
downbeat on the future outlook of the economy.
Current Personal Finances increased sharply in July
to the highest since February, with respondents
reporting that it was a good time to purchase big
ticket items.
The labour market has deteriorated significantly in
2014, with the Employment Outlook Indicator hitting
a series low in the three months to July.
High prices have been a serious concern among
consumers and while this eased a little in July,
dissatisfaction with the current level of prices and
inflationary expectations remained elevated.
In a bid to control both inflation and stabilise the
currency, the Russian central bank has raised official
interest rates by 250 basis points to 8% since the
start of 2014.
Consumers have had high inflationary expectations
since the start of the survey in March 2013 and they
hit a record high in June. In July, expectations for
inflation in 12 months’ time remained broadly stable
at 145.3 compared with 146.3 previously.
Just about half of respondents thought it would be a
good time to buy a car and of those, the majority
reported that there was greater supply and better
quality cars in the market. However, there was a
significant increase in those who cited the cost of use
or upkeep deterring them to purchase a car.
MNI Russia Consumer Indicator - Components
PersonalFinance:
Current
PersonalFinances:
Expectations
DurableBuying
Conditions
BusinessConditionsin1
Year
BusinessConditionsin5
Years
8. 8 MNI Russia Consumer Report - July 2014
All Russia - Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
MNI Russia Consumer Indicator 87.2 89.1 91.1 Feb-14 - 89.1 2.0 2.3%
Current Indicator 87.3 91.1 97.1 Feb-14 - 91.8 6.0 6.6%
Expectations Indicator 87.1 87.8 87.1 - May-14 87.3 -0.7 -0.8%
Personal Finance: Current 79.6 80.3 86.7 Feb-14 - 82.2 6.4 7.9%
Personal Finance: Expected 95.0 91.5 90.8 - series low 92.4 -0.7 -0.8%
Business Condition: 1 Year 77.7 80.7 81.1 Feb-14 - 79.8 0.4 0.5%
Business Condition: 5 Years 88.6 91.2 89.5 - May-14 89.8 -1.7 -1.9%
Durable Buying Conditions 95.1 101.8 107.5 Feb-14 - 101.5 5.7 5.6%
Current Business Conditions Indicator 85.5 91.0 93.6 Apr-14 - 90.0 2.6 2.9%
Real Estate Investment Indicator 108.0 108.2 110.8 Feb-14 - 109.0 2.6 2.4%
Car Purchase Indicator 79.3 79.8 78.4 - series low 79.2 -1.4 -1.8%
Employment Outlook Indicator 87.8 87.5 87.6 May-14 - 87.6 0.1 0.1%
Inflation Expectations Indicator 144.6 146.3 145.3 - May-14 145.4 -1.0 -0.6%
Current Prices Satisfaction Indicator 73.4 65.0 67.9 May-14 - 68.8 2.9 4.5%
Interest Rates Expectations Indicator 126.0 126.8 121.9 - Mar-14 124.9 -4.9 -3.9%
9. 9MNI Russia Consumer Report - July 2014
All Russia - Summary
2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
MNI Russia Consumer
Indicator 99.5 99.9 97.4 99.4 94.8 95.7 99.3 94.1 89.1 88.5 87.2 89.1 91.1
Current Indicator 100.5 99.2 95.8 99.2 94.3 95.7 102.0 98.6 89.4 90.2 87.3 91.1 97.1
Expectations Indicator 98.8 100.3 98.4 99.5 95.1 95.7 97.5 91.2 88.8 87.4 87.1 87.8 87.1
Personal Finance:
Current 103.2 102.1 95.3 91.0 92.0 92.5 99.3 87.3 79.5 83.7 79.6 80.3 86.7
Personal Finance:
Expected 103.4 104.9 105.4 101.2 101.7 101.9 101.2 96.3 96.3 93.4 95.0 91.5 90.8
Business Condition:
1 Year 95.9 98.7 96.1 101.5 94.9 94.4 95.1 87.8 79.4 77.8 77.7 80.7 81.1
Business Condition:
5 Years 97.2 97.5 93.7 95.8 88.7 90.8 96.4 89.4 90.7 91.1 88.6 91.2 89.5
Durable Buying Condi-
tions 97.8 96.2 96.3 107.4 96.6 98.9 104.7 109.9 99.3 96.8 95.1 101.8 107.5
Current Business
Conditions Indicator 95.4 95.6 97.6 94.5 97.4 94.9 100.3 97.5 99.2 95.7 85.5 91.0 93.6
Real Estate Invest-
ment Indicator 105.3 108.5 108.0 113.0 108.4 106.9 112.1 111.4 110.0 107.2 108.0 108.2 110.8
House Price Expecta-
tions 120.7 128.4 121.6 127.7 121.6 130.9 135.7 139.0 140.1 137.7 139.3 139.5 139.5
House Buying Senti-
ment 96.6 96.7 101.8 109.8 105.0 92.1 99.7 96.8 87.3 84.5 82.6 83.6 87.2
House Selling Senti-
ment 101.4 99.5 99.3 98.4 101.5 102.3 99.0 101.6 97.4 100.7 97.8 98.5 94.2
Car Purchase Indica-
tor 86.2 88.4 85.7 85.1 81.9 81.0 83.3 88.3 85.1 82.2 79.3 79.8 78.4
Car Purchase Expecta-
tions 101.0 109.4 107.1 101.4 98.9 98.2 104.4 110.5 106.0 103.8 99.1 103.0 104.8
Price of Gasoline
Expectations 128.6 132.7 135.6 131.3 135.2 136.2 137.7 133.8 135.8 139.4 140.5 143.4 148.0
Employment Outlook
Indicator 97.1 97.5 99.9 100.4 98.1 98.2 87.2 86.5 92.9 90.9 87.8 87.5 87.6
Inflation Expectations
Indicator 136.1 139.4 135.7 139.7 136.8 138.2 136.9 140.9 139.2 144.2 144.6 146.3 145.3
Current Prices Satisfac-
tion Indicator 73.9 85.9 85.6 80.5 73.5 71.8 69.4 74.4 76.3 67.5 73.4 65.0 67.9
Interest Rates Expecta-
tions Indicator 114.1 113.2 111.1 115.6 115.5 114.9 115.9 122.6 119.2 122.3 126.0 126.8 121.9
10. All Russia - Records
2013- Current
Minimum Maximum Mean Median
MNI Russia Consumer Indicator 87.2 99.9 95.1 97.2
Current Indicator 87.3 102.0 95.7 96.2
Expectations Indicator 87.1 100.3 94.8 97.5
Personal Finance: Current 79.5 103.2 91.8 92.5
Personal Finance: Expected 90.8 109.2 100.3 101.7
Business Condition: 1 Year 77.7 101.5 90.8 94.9
Business Condition: 5 Years 88.6 98.0 93.2 93.0
Durable Buying Conditions 92.9 109.9 99.6 97.8
Current Business Conditions Indicator 85.5 100.3 95.1 95.7
Real Estate Investment Indicator 105.3 113.0 108.7 108.0
House Price Expectations 117.9 140.1 130.1 128.4
House Buying Sentiment 82.6 109.8 95.3 96.8
House Selling Sentiment 94.2 102.3 99.4 99.3
Car Purchase Indicator 78.4 88.4 84.2 85.1
Car Purchase expectations 98.2 110.5 104.2 104.4
Price of Gasoline expectations 128.6 148.0 135.8 135.4
Employment Outlook Indicator 86.5 100.5 94.7 97.5
Inflation Expectations Indicator 130.7 146.3 139.0 138.3
Current Prices Satisfaction Indicator 65.0 86.0 76.0 74.4
Interest Rates Expectations Indicator 111.1 126.8 118.7 119.2
10 MNI Russia Consumer Report - July 2014
11. Consumer sentiment
rose for the second
consecutive month
after hitting a record
low in May.
The MNI Russia Consumer Indicator rose 2.0 points on the month to 91.1
in July, 8.4% below the level seen a year earlier.
12. Spitzzeile Titel12
Western nations have stepped up economic
sanctions against Russia following the downing of
Malaysia Airlines flight MH17 last month.
Economic Landscape
13. 13MNI Russia Consumer Report - July 2014
Western nations have stepped up economic sanctions
against Russia following the downing of Malaysia
Airlines flight MH17 last month. Recently, the EU has
imposed Tier 3 sectoral sanctions, something it has
previously shied away from, placing an embargo on
the trade of arms, energy-related equipment and
technology which will most likely prove far more
detrimental for the Russian economy than previous
economic sanctions. In addition, restrictions on
Russian access to capital markets have been extended
and now include the major state-owned banks VTB
Bank, Bank of Moscow and Russian Agricultural
Bank.
President Putin has recently approved the introduction
of a new regional sales tax from 2015 onwards which
aims to recoup budget shortfalls amid fears that
Western sanctions may affect the country’s long-term
finances. This follows the central bank’s decision to
hike the key interest rate to 8% due to continued
inflationary pressures and concerns about the impact
of geopolitical tensions on the rouble.
Economic growth stalls
The central bank has estimated that economic growth
was close to zero in Q2, citing sluggish labour
productivity growth and external political uncertainty
as the primary causes. If this holds valid, Russia
should narrowly avoid falling into a technical recession
(two quarters of negative growth) following a
slowdown to 0.9% growth in Q1 compared with a
year earlier.
Russian ministers had predicted GDP growth of 2.5%
this year before the turmoil in Ukraine. This has,
though, been dramatically reduced to just 0.5%,
following paltry growth of 1.3% in 2013. Central bank
governor Elvira Nabiullina has also revised the growth
rate for 2014 down to 0.4%, a little below the
government’s forecast, although a slight acceleration
is expected in the second half of the year.
Following the EU’s decision to enact Tier 3 sectoral
sanctions, it is likely that Russia will experience
negative growth in 2014 despite the Russian central
bank’s pledge to support any Russian banks that are
affected by Western sanctions.
Industrial production slows in June
Industrial production fell to 0.4% on the year in June,
down from 2.8% in May due to a decline in
manufacturing output growth. Manufacturing output
slowed to just 0.3% on the year in June compared
with growth of 4.8% in the previous month. More
positively, though, the first six months of the year saw
growth of 2.6% in manufacturing output compared
with a fall of 0.6% in the same period a year earlier.
Mining and quarrying output, slowed to 0.8% on the
year in June compared with a growth of 0.9% in the
previous month. Utilities output continued to contract
Economic Growth
-15%
-10%
-5%
0%
5%
10%
15%
2007 2008 2009 2010 2011 2012 2013
GDP Growth y/y %
Source: Federal State Statistics Service of Russia
14. 14 MNI Russia Consumer Report - July 2014
for the eighth consecutive month, with the pace of
decline accelerating to 0.8% on the year from a
decline of 0.5% in the previous month.
In the first six months of 2014, industrial production
grew 1.5% on the year, having contracted by 0.2% in
the same period a year ago. The economy ministry
expects industrial output to increase by about 1% this
year after it failed to grow in 2013.
In view of the rouble’s decline, the AEB has revised
their full year forecast sharply lower and now
anticipate that car sales will decline by 12% in 2014
following a drop of 5.5% in the previous year. It
expects 1.2 million cars will be sold in the second
half of this year, 16% below the level recorded a year
earlier.
Car sales decelerate in June
In June, 199,398 cars were sold in Russia, 17.4%
below the level in the same month a year earlier,
according to the Association of European Businesses
(AEB). High inflation and a weaker rouble have
negatively impacted consumer spending over the past
year. The pace of the decline in car sales had been
easing up to March when sales declined by just 0.4%,
but the market has subsequently showed signs of
distress again. The six months to June saw a decline
of 7.7% in car sales compared with the same period
a year earlier.
Inflation eases slightly in July
Consumer price inflation decelerated for the first time
this year, easing to 7.5% in July from 7.8% in June.
The introduction of a cap on regulated utility tariffs
from July 1 likely helped to restrain inflation, although,
the announcement of a new regional sales tax by
President Putin and ongoing tensions in Ukraine will
probably exacerbate spiralling inflation in Russia.
From next year, administrative regions will be able to
enact a sales tax of up to 3% on top of the current
18% federal VAT in order to cover any budget
shortfalls.
Inflation and Interest Rate
CPI y/y%
7 - day repo rate (RHS)*
Source: Federal State Statistics Service of Russia, *Central Bank of Russia
0%
2%
4%
6%
8%
10%
12%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2007
2008
2009
2010
2011
2012
2013
2014
Car Sales
-100%
-50%
0%
50%
100%
150%
2007
2008
2009
2010
2011
2012
2013
2014
Car and Light Commercial Vehicles Sales y/y %
Source: Federal State Statistics Service of Russia
15. 15MNI Russia Consumer Report - July 2014
Capital outflows from Russia’s private sector stood at
$48.8 billion in Q1 2014. About $7.4 billion left
Russia in June, down from $8.8 billion in the previous
month. Although the outflow slowed in the second
quarter to $25.8 billion, the outflow in the first six
months to June already surpassed the $62.7 billion
capital flight seen for the whole of last year. The bank
expects $90 billion in net outflow this year, which
given the current trend looks overly optimistic.
Trade surplus narrows in June
Russia’s trade surplus narrowed to $16.3 billion in
June, from $18.3 billion a month earlier, although
above $13.6 billion recorded a year earlier.
Exports eased to $42.9 billion in June, 3.2% below
May’s reading of $44.3 billion, although they were
2.5% above the same month a year earlier. Imports
declined for the sixth consecutive month to $26.6
billion, down by 5.9% on the year although 2.3%
above May’s reading of $26 billion.
It is likely that Russia’s trade surplus will narrow
further following the implementation of Tier 3 sectoral
sanctions by the EU, it’s largest trading partner, in
response to the downing of Malaysia Airlines flight
MH17. Relations are especially strained with the
Netherlands, the origin of flight MH17 which had 193
Dutch nationals on board. It is possible that the
Netherlands will introduce sanctions on oil and gas
imports from Russia which, if implemented, could be
damaging to Russia’s trade balance given its role as a
major distribution hub for oil and gas in Europe.
Russia imports a large amount of consumer goods
and food items, and the depreciation of the currency
has pushed up prices in recent months, forcing the
central bank to keep monetary policy tight.
Hike in the key policy rate
On July 25, the Russian central bank raised its
benchmark interest rate by 50 basis points to 8%
from 7.5% previously, the third increase since the
start of the year.
The bank’s central case is that consumer price
inflation will ease to 6-6.5% by the end of the year, as
the impact of the rouble decline wanes and lower
administered price hikes, a good harvest and weak
aggregate demand all bear down on inflation. Against
this, negative shocks from increased geopolitical
tension and the global monetary policy impact (a hike
in rates by the US Federal Reserve for example) on
the rouble, as well as changes to tax and tariffs policy,
could push inflation up.
The central bank made clear that should the high rate
of inflation persist, it would tighten monetary policy
further in order to meet their inflation target.
Depreciation in the rouble
The rouble has been one of the most volatile emerging
market currencies in 2014 due to the alarming levels
of capital flowing out of the country following Russia’s
annexation of Crimea. In July, the rouble was 5.8%
below the level seen in the same period a year ago,
however the decline has eased in recent months.
Consequently, foreign exchange reserves in Russia
increased to $478.3 billion in June from $467.2
billion in May as there was a reduced need to try to
protect the rouble from capital flight. However, some
of this rebound in the rouble can be attributed to a
Russian tax deadline boosting demand for the rouble
from some companies, which could mean the
resurgence could prove short-lived.
16. MNI China Consumer Report - July 201316
Consumer sentiment has dented severely since the
onset of the Ukraine crisis with confidence now
standing 8.4% below the level seen a year earlier.
Indicators
17. 17MNI Russia Consumer Report - July 2014
Russian consumer sentiment increased for the second
consecutive month after hitting a record low in May,
although it still remains well below the levels seen at
the start of the year prior to the annexation of Crimea.
The MNI Russia Consumer Indicator rose 2.0 points
on the month to 91.1 in July from 89.1 in June.
Consumer sentiment has dented severely since the
onset of the Ukraine crisis with confidence now
standing 8.4% below the level seen a year earlier.
A reading below 100 indicates increasing negativity
among consumers, while values above show
increasing positivity. Consumer sentiment has
remained below the 100 breakeven level since the
series started in March 2013 and Q2 2014 marked
the weakest sentiment on record given the significant
weakening in economic growth and ramifications of
Russia’s military action in Crimea.
Consumers in July felt significantly better about their
current economic circumstances, although remained
downbeat on the future outlook of the economy.
Current Personal Finances increased sharply in July to
the highest since February, with respondents reporting
that it was a good time to purchase big ticket items.
Optimism is expected to be short-lived with
expectations for future Personal Finances hitting a
series low and respondents remaining pessimistic
about the outlook for businesses.
While it looks like the Russian economy may have
escaped falling into recession in Q2, there has been
little to cheer about in other economic data which
91.1
MNI Russia Consumer Indicator
Highest Since February
MNI Russia Consumer Indicator
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
MNI Russia
Consumer Indicator 99.5 94.1 89.1 88.5 87.2 89.1 91.1
Current 100.5 98.6 89.4 90.2 87.3 91.1 97.1
Expectations 98.8 91.2 88.8 87.4 87.1 87.8 87.1
80
84
88
92
96
100
104
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
MNI Russia Consumer Indicator
76
80
84
88
92
96
100
104
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Current and Expectations Indicators
Current
Expectations
18. 18 MNI Russia Consumer Report - July 2014
91.1
97.1
87.1
Total Indicator Current Indicator Expectations Indicator
All Russia
96.5
102.4
92.6
Total Indicator Current Indicator Expectations Indicator
Central Russia
93.3
91.3
94.6
Total Indicator Current Indicator Expectations Indicator
West Siberian
86.0
96.9
78.8
Total Indicator Current Indicator Expectations Indicator
Volga
85.9
106.4
72.3
Total Indicator Current Indicator Expectations Indicator
Urals
95.0
92.6
96.6
Total Indicator Current Indicator Expectations Indicator
North Caucasus
19. 19MNI Russia Consumer Report - July 2014
showed inflation hitting a three year high in June and
eased only slightly in July. In response, the Russian
central bank raised its benchmark interest rate by 50
basis points to 8% from 7.5% towards the end of July,
the third increase since the start of the year. Further
upward pressure on inflation could well prompt action
from the central bank especially given the negative
geopolitical backdrop and pressure on the rouble.
The downing of a Malaysia Airlines flight MH17, which
occurred after our survey was conducted, resulted in
a ratcheting up in sanctions from both the EU and US
against Russia’s finance, energy and weapons
industries. The new sanctions will restrict Russian
state-owned banks from accessing European and
American capital markets and reduce the export of
oil-related equipment, military arms and technology
to Russia.
Tighter monetary policy and the impact of sanctions
will no doubt have a negative impact on both growth
and consumer sentiment over the coming months.
The Current Indicator, which measures consumers’
assessment of current conditions, rose to 97.1 in July
from 91.1 in June, while the Expectations Indicator,
which is made up of the three forward looking
components, stood at 87.1 in July compared with
87.8 previously.
Regions
The rise in the MNI Russia Consumer Indicator was
led by all major regions apart from the Volga region,
which witnessed the sharpest decline in four months.
In the Volga region, confidence declined to 86.0 from
93.2 in June. Consumers were highly pessimistic
about the future, especially Business Conditions in
one year’s time. In contrast, more respondents
expected business conditions to improve in five years.
1.4
-0.2
0.1
-0.4
1.3
Personal Finances: Current
Personal Finances: Expected
Business Conditions: 1 Year
Business Conditions: 5 Years
Durable Buying Conditions
Consumer Indicator: Contribution to Monthly Change
(% pt.)
20. 20 MNI Russia Consumer Report - July 2014
Among the top five regions, respondents from Central
Russia had the strongest consumer sentiment, at
96.5 in July, the highest since February.
Age
Consumer sentiment rose among the youngest age
group but fell in the oldest age group.
Consumer confidence in the youngest group rose to
the highest in five months in July after hitting a record
low in June. The Consumer Indicator for the 18-34
year age range increased to 93.6 from 88.1 in June.
Consumers were highly confident about their current
conditions as they reported healthier Personal
Finances and a higher willingness to purchase
household goods. Respondents were also more
optimistic about Business Conditions in a Year’s time,
but not about longer term economic conditions
Consumer sentiment among 35-54 year olds stood at
91.1 in July compared with 90.6 in June. Their belief
that it is a good time to purchase big tickets items was
strong despite a not so buoyant Personal Financial
situation. Among the five components of the Consumer
Indicator, respondents were the least confident about
Business Conditions in One Year.
For the oldest age range, 55-65 year olds, consumer
confidence fell to the lowest since the start of the
survey to 82.9 in July, offsetting the previous month’s
rise to 88.3. Consumers were highly perturbed about
future Business Conditions, as they probably feared
the impact of harsher sanctions on an already troubled
economy.
Income
Consumer confidence rose in high income groups
while it remained subdued in low income households
in July.
91.1
93.6
91.1
82.9
All 18-34 35-54 55-64
Consumer Indicator: Age Groups
Consumer confidence for households with an average
annual income of over RUB 480,000 expanded for
the first time in five months to 100.5 in July from
97.1 in June, the highest level since April 2013.
They were highly confident about current conditions
but did not expect future conditions to improve much.
For households with an average annual income
under RUB 432,000, the indicator stood at 84.7 in
July compared with 84.3 in June. Respondents were
perturbed about Business Conditions in a Year’s
time.
Compared with the previous year, confidence was
about the same level among higher income
households, while for lower income households it
was 12% lower. And, on average, the level of
confidence remained greater for higher income
households. Our survey shows that low income
households have been hit the most while wealthier
ones have not been impacted much by the current
political and economic tension.
21. 21MNI Russia Consumer Report - July 2014
84.7
88.5
82.1
Total Indicator Current Indicator Expectations Indicator
< RUB 480,000 Per Annum
100.5
109.7
94.4
Total Indicator Current Indicator Expectations Indicator
> RUB 480,000 Per Annum
MNI Russia Consumer Indicator
Income Groups
22. 22 MNI Russia Consumer Report - July 2014
MNI Russia Consumer Indicator
Main Cities
The Consumer Indicator rose in only four, fell in five
and remained broadly stable in one city out of the 10
major cities surveyed. In spite of a rise in general
confidence levels, consumer sentiment in the top 10
cities failed to expand in July.
In the capital Moscow, consumer sentiment rose
slightly to 93.2 after declining for three months to
92.3 in June. More consumers were optimistic about
their Current Personal Finances and expected their
finances to improve over the next 12 months.
Expectations for Business Conditions in Five Years
eased back amid economic and political tensions.
In Saint Petersburg, the second largest city in Russia,
consumer sentiment declined for the second
consecutive month to 96.7 in July from 98.7 in June.
Consumers had less money to spend on big ticket
items and they were less optimistic about Business
Conditions. Their expectations for future Personal
Finances, which remained above 100, were broadly
unchanged from the previous month.
Consumer confidence in Novosibirsk, the third largest
city by population in Russia, slipped 5.4 points to
84.4 in July from 89.8 in June. More consumers
witnessed a rise in their Personal Finances but this
was not enough for them to find it a good time to
purchase household items. Respondents had serious
concerns about the business environment, especially
the longer term, the indicator for which hit a series
low.
80
85
90
95
100
105
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator - Moscow
98.1
89.9
93.5
102.2
79.5
88.2
102.7
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components - Moscow
23. 23MNI Russia Consumer Report - July 2014
80
85
90
95
100
105
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator - Saint Petersburg
70
80
90
100
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator - Novosibirsk
92.5
99.5
90.7
103.8
92.5
102.3
94.3
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components - Saint Petersburg
87.9
82.1
83.0
80.6 80.8
85.0
92.8
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components - Novosibirsk
24. MNI Russia Consumer Report - July 201424
Respondents were more confident about their finances
in the current month while expectations for the next
12 months declined to the lowest level on record.
The Current Personal Finances Indicator, which
measures whether a household is better or worse off
than a year ago, rose by 6.4 points to 86.7 in July
from 80.3 in June, the highest since February. In
spite of the gain, the indicator was 16% below the
level seen in the previous year.
Out of those who reported that their financial
conditions improved, a growing proportion gave credit
to business policies. However, of those who thought
their personal finances had worsened, a high
proportion said it was because of their employment
situation.
Consumers have been hit by higher inflation and
weaker rouble this year which has impacted their
personal disposable income and savings. In July,
94.8% of respondents spent 70-100% of their
monthly household income on daily expenses, the
lowest proportion in more than a year, while 78.9% of
respondents said they were saving between just
1-29% of their monthly household income, the lowest
since the start of the survey.
Expected Personal Finances, which measures whether
households think their finances will be better in a
year’s time, declined further to a record low level of
90.8 from 91.5 in June. Consumers’ expectations
have driven gradually down, with July being the sixth
consecutive month that consumers have been
pessimistic.
86.7
Personal Finances
Current Finances Rise Markedly
Personal Finances
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Current 103.2 87.3 79.5 83.7 79.6 80.3 86.7
Expectations 103.4 96.3 96.3 93.4 95.0 91.5 90.8
50
60
70
80
90
100
110
120
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Personal Finances
Current
Expectations
31.9%
9.5%
58.5%
0.1%
Current Financial Situation Compared with 1 Year
Ago (% of Households)
Much Better
A Little Better
Same
A Little Worse
Much Worse
Don’t Know/No Answer
25. MNI Russia Consumer Report - July 2014 25
5.2%
94.8%
Daily Expenses
(% of Households)
20.7%
78.9%
0.4%
Monthly Household Income Used for Savings
(% of Households)
90.8%
4.4%
4.8%
Monthly Household Income Used for Large Loan
Repayment (% of Households)
50.1%49.6%
0.3%
Monthly Household Income Used for Investments
(% of Households)
How Households Spend their
Money
0% - 29% of Income
30% - 49% of Income
0% of Income
1% - 29% of Income
0% of Income
1% - 29% of Income
0% of Income
1% - 29% of Income
50% - 69% of Income
70% - 100% of Income
30% - 49% of Income
50% - 100% of Income
30% - 49% of Income
50% - 100% of Income
30% -49% of Income
50% - 100% of Income
26. MNI Russia Consumer Report - July 201426
The threat of stricter sanctions and the continued lack
of the government’s plan to reinvigorate growth left
consumers worried about the outlook for business.
The indicator for Business Conditions in One Year
stood at 81.1 compared with 80.7 in June and was
significantly below the outturn of 95.9 in the same
period a year ago. The majority of those who expected
business conditions to worsen in a year’s time cited
weaker income and employment as the main reasons.
Consumers have increasingly been less hopeful about
longer term Business Conditions since March 2013.
Expectations about Business Conditions in Five Years
fell to 89.5 in July from 91.2 in June, the lowest since
May and about 8% below past year. Among the major
cities surveyed, Kazan was the least optimistic city
about longer term business conditions and respondents
from Moscow had the sharpest fall on the month.
The Current Business Conditions Indicator, which
measures respondents’ views on the state of business
compared with a year earlier, rose to 93.6 in July from
91.0 in June but was still almost 7% below the level
seen a year ago.
93.6
Business Conditions
Remain Subdued
Business Conditions
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Current 95.4 97.5 99.2 95.7 85.5 91.0 93.6
In 1 Year 95.9 87.8 79.4 77.8 77.7 80.7 81.1
In 5 Years 97.2 89.4 90.7 91.1 88.6 91.2 89.5
83
85
87
89
91
93
95
97
99
101
103
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Current Business Conditions Indicator
50
60
70
80
90
100
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Expected Business Conditions
1 Year
5 Years
27. MNI Russia Consumer Report - July 2014 27
Business Conditions in 1 Year
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
15.7%
29.4%
27.6%
11.6%
15.6%
All Russia, Reasons for Better
24.9%
29.9% 30.9%
7.7%
5.3%
1.3%
All Russia, Reasons for Worse
30.2% 30.1%
69.8% 69.9%
Jun-14 Jul-14
All Russia
About 21% of respondents thought conditions were
“poor” or “very poor” while 65.3% of them thought
they were “only fair”. Our survey period closed before
sectoral sanctions were imposed, the repercussions of
which will be seen in the coming months.
Better
Worse
28. MNI Russia Consumer Report - July 201428
Business Conditions in 1 Year
Regions
Central North
Caucasus
Urals Volga West Siberian
Reasons for Better
(% of Respondents)
31.3%
39.5%
25.5%
24.4%
40.0%
68.7%
60.5%
74.5% 75.6%
60.0%
Central North Caucasus Urals Volga West Siberian
Business Expectations: Worse or Better?
(% of Respondents)
Central North
Caucasus
Urals Volga West Siberian
Reasons for Worse
(% of Respondents)
Better
Worse
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
29. 29MNI Russia Consumer Report - July 2014
More consumers were willing to purchase large
household items in July as they feared prices will rise
in the future.
The Durable Buying Conditions Indicator rose to 107.5
in July from 101.8 in June, the highest since February.
Respondents are asked whether they believe it is a
good or bad time to purchase a large consumer
durable, and a result above 100 means that a higher
percentage of respondents view it as a good time. The
Durable Buying Conditions Indicator was the strongest
component of the overall MNI Russia Consumer
Indicator in July.
Out of the ten largest cities surveyed, only respondents
from Moscow and Samara were optimistic about
buying a large household item in July. Respondents
from all other cities felt it wasn’t a good time to spend
on large household items, with the Durable Buying
Conditions Indicator remaining below 100.
Durable Buying Conditions
Highest Since February
Durable Buying Conditions
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Durable Buying
Conditions 97.8 109.9 99.3 96.8 95.1 101.8 107.5
107.5
90
95
100
105
110
115
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Durable Buying Conditions
53.0%
7.9%
38.0%
1.0%
Is It a Good or Bad Time to Buy Large Household
Goods? (% of Households)
Excellent Time
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
30. 30 MNI Russia Consumer Report - July 2014
The outlook for the employment market remained
subdued as concerns over further sanctions and the
state of the economy mounted.
The Employment Outlook Indicator, which measures
opinion on the outlook for the employment market
over the next 12 months stood at 87.6 in July
compared with 87.5 in June. The labour market has
deteriorated significantly in 2014, with the
Employment Outlook Indicator hitting a series low in
the three months to July.
Respondents from the Urals region were the least
optimistic about the employment outlook, although
they were more positive from a month ago. In West
Siberian, there was a sharp rise in those who thought
employment conditions would be a little worse,
pushing the Employment Outlook to a record low.
Official statistics showed that the unemployment rate
stood at 4.9% in June, unchanged from May. Results
from the July edition of our sister survey on Russian
Businesses showed that companies’ hiring has
reduced, in line with the economy’s downturn and
they remained neutral about employment conditions
over the next three months.
Employment Outlook
Remains Broadly Stable
Employment Outlook
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Employment
Outlook 97.1 86.5 92.9 90.9 87.8 87.5 87.6
75
80
85
90
95
100
105
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Employment Outlook Indicator
9.2%
55.0%
27.5%
3.3%
5.0%
Employment Outlook for the Next 12 Months
(% of Households)
87.6
Much Better
A Little Better
Same
A Little Worse
Much Worse
Don’t Know/No Answer
31. 31MNI Russia Consumer Report - July 2014
High prices have been a serious concern among
consumers and while this eased a little in July,
dissatisfaction with the current level of prices and
inflationary expectations remained elevated.
Satisfaction with current prices has rapidly trended
downwards since last year in line with the decline in
the rouble. More than 50% of respondents reported
they were dissatisfied with the current level of prices,
slightly less than the previous month. The Current
Prices Satisfaction Indicator rose to 67.9 in July from
65.0 in June, well below the average of 74.3 for the
past 12 months and the series average of 76.0. A
figure below 100 indicates wider dissatisfaction with
the current level of prices. The further below 100, the
greater the dissatisfaction. The indicator has remained
below 100 since the survey started in March 2013
and in July it was 8.1% below the same period a year
earlier.
Official data showed that consumer price inflation
eased for the first time this year to 7.5% in July from
7.8% in June. The cost of food products rose by 9.8%
on the year, unchanged from the previous month.
Consumers have had high inflationary expectations
since the start of the survey in March 2013 and they
hit a record high in June. In July, expectations for
inflation in 12 months’ time remained broadly stable
at 145.3 compared with 146.3 previously.
Prices Sentiment
Eases Slightly
Prices Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Satisfaction with
Current Prices 73.9 74.4 76.3 67.5 73.4 65.0 67.9
Inflation Expecta-
tions 136.1 140.9 139.2 144.2 144.6 146.3 145.3
60
65
70
75
80
85
90
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Satisfaction with Current Prices Indicator
126
131
136
141
146
151
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Inflation Expectations Indicator
67.9
32. 32 MNI Russia Consumer Report - July 2014
3.4%
44.8%
35.6%
16.0%
0.2%
Satisfaction with Current Prices
(% of Households)
Very Satisfied
Quite Satisfied
So So
Not Very Satisfied
Not Satisfied At All
Don’t Know/No Answer
19.3%
52.9%
26.4%
0.9% 0.5%
Inflation Expectations in 12 Months
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t Know/No Answer
The Russian central bank has raised official interest
rates by 250 basis points to 8% since the start of
2014 in a bid to control both inflation and stabilise the
currency. While governor Elvira Nabiullina has said
that the current monetary policy stance will achieve
the bank’s medium-term inflation goals, the central
bank has made it clear that it will tighten policy further
should inflation remain too high.
Consumers have had exceptionally high inflationary
expectations since March this year when the rouble
crashed against the US dollar and the euro. The
majority of respondents believed that prices would
rise more than 25% over the next year, a trend seen
since February, before which they expected prices to
rise 11-24%.
Regions
Satisfaction with Current Prices rose in Volga, Urals
and Central Russia. The majority of West Siberian
respondents said they were not satisfied at all, pushing
the Current Prices Satisfaction indicator to a record
low level in July. More respondents from North
Caucasus were also dissatisfied with the current level
of prices, with the indicator declining to the series
low.
Consumers from Central and Western Siberia regions
had lower expectations for future prices. In contrast,
consumers from Volga expected prices to be much
higher in the next 12 months. They had the highest
inflationary expectations over the next 12 months
compared with other regions as well.
Prices Sentiment
Regions
33. 33MNI Russia Consumer Report - July 2014
67.9 68.7
62.1 61.9
92.4
44.3
All Russia Central North
Caucasus
Urals Volga West
Siberian
Current Prices Satisfaction Indicator
145.3 147.5
130.4
158.2
173.4
110.7
All Russia Central North
Caucasus
Urals Volga West
Siberian
Inflation Expectations Indicator
All Russia Central North
Caucasus
Urals Volga West
Siberian
Satisfaction with Current Prices
(% of Households)
Very Satisfied
Quite Satisfied
Neutral
Not Very Satisfied
Not Satisfied At All
Don’t Know/No Answer
Central North
Caucasus
Urals Volga West Siberian
Expected Change in Prices in 1 Year
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t Know/No Answer
34. 34 MNI Russia Consumer Report - July 2014
Consumers’ expectations about interest rates on car
and home loans have trended upwards since
September and in July they eased slightly after hitting
a record high in the previous month.
This survey was conducted before the Central Bank
raised its key policy rate by 50 basis points to 8% on
July 25 from 7.5% previously, the third increase since
the start of the year. The central bank made clear that
should the high rate of inflation persist, it will tighten
monetary policy further in order to meet the inflation
target.
The Interest Rate Expectations Indicator fell to 121.9
in July from 126.8 in June and was 6.8% above the
level recorded in the same month a year earlier. The
indicator has remained above 100 since the survey
started in March 2013, indicating that more
households expected interest rates to rise than fall in
the coming year, and the three months to July
averaged very close to the series high recorded in Q2
2014.
Survey participants forecasting that interest rates on
home and car loans would be higher in a year’s time
fell to almost 40% from 45% in June. The percentage
of respondents expecting interest rates would be the
same rose to 48% from almost 45% in June.
Interest Rate Expectations
Lowest Since March
Interest Rate Expectations
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Interest Rate
Expectations 114.1 122.6 119.2 122.3 126.0 126.8 121.9
121.9
100
110
120
130
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Interest Rate Expectations Indicator
9.1%
30.7%
48.0%
5.2%
6.9%
Expected Change in Interest Rate in 1 year
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t Know/No Answer
35. 35MNI Russia Consumer Report - July 2014
In spite of the continued subdued level of overall
consumer sentiment, optimism about real estate
increased further in July.
The Real Estate Investment Indicator, which is made
up of three components (House Price Expectations,
House Buying Sentiment and House Selling Sentiment)
rose to 110.8 in July from 108.2 in June.
Consumers’ expectations about house prices hit a
record high in June and it remained flat in July. The
House Price Expectations component, which
measures the outlook for prices over the coming six
months, remained at 139.5 in July, which was 15.7%
above the outturn of 120.7 in the same month a year
earlier.
Consumers’ sentiment about purchasing a house rose
for the second consecutive month in July but has
dropped significantly since last year. House Buying
Sentiment, a measure of whether it is a good time to
buy a house in the next six months, rose to 87.2 in
July from 83.6 in June.
With expectations of higher house prices in the next
six months, respondents did not believe it was a good
time to sell a house. This is shown in House Selling
Sentiment, a measure of whether it is a good time to
sell a house in the next six months, which fell to a
series low of 94.2 in July from 98.5 in June. This
component has a negative impact on overall housing
sentiment.
Real Estate Investment
Highest in Five Months
Real Estate Investment Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Real Estate Invest-
ment Sentiment 105.3 111.4 110.0 107.2 108.0 108.2 110.8
Price Expectations 120.7 139.0 140.1 137.7 139.3 139.5 139.5
House Buying 96.6 96.8 87.3 84.5 82.6 83.6 87.2
House Selling 101.4 101.6 97.4 100.7 97.8 98.5 94.2
110.8
100
102
104
106
108
110
112
114
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Real Estate Investment Indicator
0.0
1.1
1.3
House Price Expectations
House Buying Sentiment
House Selling Sentiment
Real Estate Investment Indicator: Contribution to
Monthly Change (% pt.)
36. 36 MNI Russia Consumer Report - July 2014
105
110
115
120
125
130
135
140
145
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Real Estate Prices: Expected Changes
108.2
139.5
83.6
98.5
110.8
139.5
87.2
94.2
Real Estate
Investment
Indicator
House Price
Expectations
House Buying
Sentiment
House Selling
Sentiment
Real Estate Investment Indicator - Components
All Russia Central North Caucasus Urals Volga
Expected Changes in Real Estate Prices in the Next
6 months (% of Households)
Real Estate Investment
Components and Balances
Regions
The Real Estate Investment Indicator improved in all
regions apart from the Volga region, where House
Price Expectations hit a record low level in July.
Respondents from the Central region were the most
optimistic about real estate investment as their
expectations about house prices hit a record high
level in July.
In West Siberian, respondents were more optimistic
about housing. The Real Estate Investment sentiment
jumped above the 100 mark to the highest since
February as the combined effect of higher House
Price Expectations and House Buying Sentiment
outweighed the rise in House Selling sentiment.
June 2014
July 2014
Go Up Dramatically
Go Up Slightly
Stay the Same
Gow Down Slightly
Go Down Sharply
Don’t Know/No Answer
37. 37MNI Russia Consumer Report - June 2014
80
85
90
95
100
105
110
115
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
House Buying Sentiment
90
95
100
105
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
House Selling Sentiment
23.9%
8.2%
25.7%
0.5%
31.9%
9.7%
Reasons for Buying Houses (% of Households)
8.5%
66.2%
18.5%
0.8%
5.9%
Timing for Selling Houses (% of Households)
Excellent Time
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
Prices
Income/Purchasing Power
Investment Value
Policy/Interest Rate
Supply and Quality
Others
38. 38 MNI Russia Consumer Report - July 2014
Consumers believed it would be a good time to
purchase a car in the next 12 months in spite of weak
employment conditions and economic growth.
The Car Purchase Expectations, which gauges
whether consumers believe it is a good or bad time to
purchase a car over the next 12 months, rose slightly,
following a much stronger growth in the previous
month. Just about half of respondents thought it
would be a good time to buy a car with the component
rising to 104.8 from 103.0 in June.
Consumers’ confidence towards car purchase has
fallen in each month since February apart from a
small rise in the previous month and in July it was still
9% below the level seen a year ago. This likely reflects
the impact of higher interest rates as compared with
the previous year, making a car purchase an even
more expensive affair. There was a substantial rise in
consumers who reported weaker income and
purchasing power holding them back from purchasing
a car.
Of those who felt it was a good time to purchase a car,
the majority reported that there was greater supply
and better quality cars in the market. However, of
those who thought it was a bad time to purchase a
car, there was a significant increase in those who
cited cost of use or upkeep as the main reason. About
three-quarters of consumers thought the price of
gasoline would rise in the next 12 months.
Car Purchase
Gas Price Expectations at
Record Level
70
80
90
100
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Car Purchase Indicator
80
90
100
110
120
130
140
150
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Car Purchase Indicator - Components
Car Purchase Expectations
Price of Gasoline
Car Purchase Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Car Purchase
Sentiment 86.2 88.3 85.1 82.2 79.3 79.8 78.4
Car Purchase
Expectations 101.0 110.5 106.0 103.8 99.1 103.0 104.8
Price of Gasoline 128.6 133.8 135.8 139.4 140.5 143.4 148.0
78.4
39. 39MNI Russia Consumer Report - July 2014
All Russia Central North
Caucasus
Urals Volga West
Siberian
Reasons for a Bad Time to Buy a Car
(% of Households)
Prices
Income/Purchasing Power
Policy/Interest Rate
Supply and Quality
Cost of Use/Upkeep
Others
Reasons for a Good Time to Buy a Car
(% of Households)
All Russia Central North
Caucasus
Urals Volga West
Siberian
Prices
Income/Purchasing Power
Policy/Interest Rate
Supply and Quality
Cost of Use/Upkeep
Others
21.5%
54.2%
9.1%
1.1%
14.1%
Expected Change in the Price of Gasoline
(% of Households)
Go Up Dramatically
Go Up Slightly
Stay the Same
Go Down Slightly
Go Down Sharply
Don’t Know/No Answer
Expectations for the Price of Gasoline increased to
148.0 in July from 143.4 in June, the highest reading
since the start of the survey.
The Car Purchase Expectations and Expectations for
the Price of Gasoline compose the Car Purchase
Indicator. Car Purchase Sentiment hit a record low of
78.4 in July from 79.8 in the previous month as the
negative impact of higher gas price expectations
outweighed consumers’ willingness to own a car. In
general, higher inflation and a weaker rouble have
negatively impacted consumer spending on cars.
40. 40 MNI Russia Consumer Report - July 2014
MNI Russia Consumer Indicator
Regions
92.6
96.6
89.9
100.6
89.5
99.7
95.3
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: North Caucasus
75
80
85
90
95
100
105
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator: North Caucasus
91.3
94.6
90.4
96.9
90.0
96.8
92.3
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: West Siberian
70
80
90
100
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator: West Siberian
41. 41MNI Russia Consumer Report - July 2014
96.9
78.8
53.7
73.4
67.1
95.8
140.1
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: Volga
60
70
80
90
100
110
120
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator: Volga
102.4
92.6 95.2
100.7
85.9
91.3
109.6
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: Central
90
95
100
105
110
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator: Central
42. 42 MNI Russia Consumer Report - July 2014
Much Better
A Little Better
About the Same
A Little Worse
Much Worse
Don’t Know/No Answer
Much Better
A Little Better
About the Same
A Little Worse
Much Worse
Don’t Know/No Answer
106.4
72.3
98.9
72.3 74.0
70.6
113.8
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Central North
Caucasus
Urals Volga West Siberain
Consumer Indicator Components: Urals
Interest Rates Expectations Indicator
(% of Households)
73
78
83
88
93
98
103
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Central North
Caucasus
Urals Volga West Siberian
Consumer Indicator: Urals
Employment Indicator Outlook for the Next 12
Months (% of Households)
43. 43MNI Russia Consumer Report - July 2014
MNI Russia Consumer Indicator
Income Groups
78.7
87.8
70.2
88.4
98.2
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
< RUB 480,000 - Components
84.3
84.8
83.9
84.7
88.5
82.1
Total Indicator Current Indicator Expectations Indicator
< RUB 480,000 Per Annum
98.5
94.2 97.7
91.5
120.8
Personal
Finances:
Current
Personal
Finances:
Expectations
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
> RUB 480,000 - Components
97.1
101.6
94.0
100.5
109.7
94.4
Total Indicator Current Indicator Expectations Indicator
> RUB 480,000 Per Annum
June 2014
July 2014
June 2014
July 2014
44. MNI Russia Consumer Report - July 201444
A selection of comments from the panel of
consumers surveyed over the past month.
What the Panel Said
45. MNI Russia Consumer Report - July 2014 45
“The work situation has become better.”
“I have got a new part-time job to solve my financial
problems.”
“Our finances don’t allow us to buy a new real estate.”
“Unsatisfactory terms of consumer credit.”
“Small businesses are being killed.”
“The government’s policy is unpredictable.”
“Car insurance is expensive.”
“If you lose your job, you will not find one.”
“Business situation has worsened.”
“One should buy now as house prices will definitely
grow.”
“The quality of imported cars is good.”
“Business is under pressure, we might close soon.”
“To buy a flat is impossible, but a car is OK.”
“People will pay for all these sanctions.”
“Everything is just getting more expensive.”
“It is always good to invest in real estate.”
“My quality of life has improved and I am more
willing to buy a new car.”
“Prices for housing are very high.”
“Labour productivity in industries is slowing all the
time.”
“Crimea is one of the best places in Russia.”
“It is better to buy a house than to pay rent.”
“Advertising campaigns are well made. They
stimulate demand and sale of goods.”
46. MNI China Consumer Report - July 201346
A closer look at the data from the July consumer
survey.
Data Tables
47. 47MNI Russia Consumer Report - July 2014
Russia - Central Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Russia - Central
Consumer Indicator
93.6 94.4 96.5 Feb-14 - 94.8 2.1 2.3%
Current Indicator 96.2 99.1 102.4 Jan-14 - 99.2 3.3 3.4%
Expectations Indicator 91.9 91.3 92.6 Apr-14 - 91.9 1.3 1.5%
Personal Finance: Current 91.1 90.3 95.2 Jan-14 - 92.2 4.9 5.4%
Personal Finance: Expected 99.6 97.0 100.7 Apr-14 - 99.1 3.7 3.8%
Business Condition: 1 Year 86.0 83.3 85.9 May-14 - 85.1 2.6 3.2%
Business Condition: 5 Years 90.1 93.6 91.3 - May-14 91.7 -2.3 -2.5%
Durable Buying Conditions 101.3 107.8 109.6 Feb-14 - 106.2 1.8 1.6%
Current Business Conditions Indicator 88.5 93.4 91.1 - May-14 91.0 -2.3 -2.5%
Real Estate Investment Indicator 114.6 111.9 115.3 series high - 113.9 3.4 3.0%
Car Purchase Indicator 83.3 83.9 77.1 - series low 81.4 -6.8 -8.0%
Employment Outlook Indicator 90.9 90.7 90.3 - Feb-14 90.6 -0.4 -0.4%
Inflation Expectations Indicator 147.4 149.7 147.5 - May-14 148.2 -2.2 -1.5%
Current Prices Satisfaction Indicator 69.6 66.8 68.7 May-14 - 68.4 1.9 2.9%
Interest Rates Expectations Indicator 115.9 112.8 115.7 May-14 - 114.8 2.9 2.6%
48. 48 MNI Russia Consumer Report - July 2014
Russia - Urals Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Russia - Urals Consumer Indicator 83.3 75.3 85.9 Feb-14 - 81.5 10.6 14.1%
Current Indicator 78.9 83.1 106.4 Jul-13 - 89.5 23.3 28.0%
Expectations Indicator 86.2 70.1 72.3 May-14 - 76.2 2.2 3.2%
Personal Finance: Current 58.0 80.9 98.9 Jan-14 - 79.3 18.0 22.2%
Personal Finance: Expected 86.5 68.1 72.3 May-14 - 75.6 4.2 6.1%
Business Condition: 1 Year 81.0 55.2 74.0 May-14 - 70.1 18.8 34.1%
Business Condition: 5 Years 91.2 86.9 70.6 - series low 82.9 -16.3 -18.8%
Durable Buying Conditions 99.8 85.3 113.8 Feb-14 - 99.6 28.5 33.4%
Current Business Conditions Indicator 75.8 84.5 92.7 Mar-14 - 84.3 8.2 9.6%
Real Estate Investment Indicator 109.7 110.1 114.6 Feb-14 - 111.5 4.5 4.1%
Car Purchase Indicator 76.6 75.0 89.4 Oct-13 - 80.3 14.4 19.2%
Employment Outlook Indicator 76.2 69.3 76.5 Mar-14 - 74.0 7.2 10.4%
Inflation Expectations Indicator 158.4 157.7 158.2 May-14 - 158.1 0.5 0.3%
Current Prices Satisfaction Indicator 63.4 42.0 61.9 May-14 - 55.8 19.9 47.3%
Interest Rates Expectations Indicator 133.4 149.9 140.0 - May-14 141.1 -9.9 -6.6%
49. 49MNI Russia Consumer Report - July 2014
Russia - Volga Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Russia - Volga
Consumer Indicator
76.9 93.2 86.0 - May-14 85.4 -7.2 -7.7%
Current Indicator 99.8 96.1 96.9 May-14 - 97.6 0.8 0.8%
Expectations Indicator 61.7 91.2 78.8 - May-14 77.2 -12.4 -13.7%
Personal Finance: Current 92.0 53.9 53.7 - series low 66.5 -0.2 -0.4%
Personal Finance: Expected 83.7 81.2 73.4 - Apr-14 79.4 -7.8 -9.5%
Business Condition: 1 Year 54.3 113.2 67.1 - May-14 78.2 -46.1 -40.7%
Business Condition: 5 Years 47.2 79.4 95.8 Apr-14 - 74.1 16.4 20.7%
Durable Buying Conditions 107.6 138.3 140.1 Jan-14 - 128.7 1.8 1.3%
Current Business Conditions Indicator 47.7 84.7 108.7 Jan-14 - 80.4 24.0 28.3%
Real Estate Investment Indicator 99.5 106.7 103.6 - May-14 103.3 -3.1 -2.8%
Car Purchase Indicator 95.8 84.6 57.9 - series low 79.4 -26.7 -31.5%
Employment Outlook Indicator 62.7 73.5 83.2 Apr-14 - 73.1 9.7 13.2%
Inflation Expectations Indicator 171.6 153.0 173.4 Apr-14 - 166.0 20.4 13.3%
Current Prices Satisfaction Indicator 91.3 46.0 92.4 Sep-13 - 76.6 46.4 100.7%
Interest Rates Expectations Indicator 158.0 151.5 149.4 - Apr-14 153.0 -2.1 -1.4%
50. 50 MNI Russia Consumer Report - July 2014
Russia - North Caucasus Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Russia - North Caucasus
Consumer Indicator
83.9 87.2 95.0 Oct-13 - 88.7 7.8 9.0%
Current Indicator 73.0 78.7 92.6 Oct-13 - 81.4 13.9 17.6%
Expectations Indicator 91.1 92.8 96.6 Jan-14 - 93.5 3.8 4.1%
Personal Finance: Current 73.1 77.6 89.9 Jan-14 - 80.2 12.3 15.8%
Personal Finance: Expected 101.5 101.1 100.6 - Oct-13 101.1 -0.5 -0.4%
Business Condition: 1 Year 72.7 78.1 89.5 Jan-14 - 80.1 11.4 14.6%
Business Condition: 5 Years 99.2 99.2 99.7 Mar-14 - 99.4 0.5 0.5%
Durable Buying Conditions 73.0 79.8 95.3 Oct-13 - 82.7 15.5 19.4%
Current Business Conditions Indicator 102.9 103.0 100.3 - Oct-13 102.1 -2.7 -2.5%
Real Estate Investment Indicator 100.9 97.1 106.3 Feb-14 - 101.4 9.2 9.5%
Car Purchase Indicator 67.1 67.5 78.4 Mar-14 - 71.0 10.9 16.2%
Employment Outlook Indicator 100.4 100.2 99.0 - Jan-14 99.9 -1.2 -1.3%
Inflation Expectations Indicator 125.6 123.9 130.4 Oct-13 - 126.6 6.5 5.2%
Current Prices Satisfaction Indicator 72.9 72.4 62.1 - series low 69.1 -10.3 -14.2%
Interest Rates Expectations Indicator 104.3 101.6 105.0 Jan-14 - 103.6 3.4 3.3%
51. 51MNI Russia Consumer Report - July 2014
Russia - West Siberian Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Russia - West Siberian
Consumer Indicator
77.1 87.8 93.3 Apr-14 - 86.1 5.5 6.2%
Current Indicator 60.8 77.9 91.3 Mar-14 - 76.7 13.4 17.3%
Expectations Indicator 87.9 94.5 94.6 Apr-14 - 92.3 0.1 0.1%
Personal Finance: Current 59.0 75.8 90.4 Feb-14 - 75.1 14.6 19.1%
Personal Finance: Expected 106.0 106.9 96.9 - series low 103.3 -10.0 -9.4%
Business Condition: 1 Year 58.9 77.6 90.0 Mar-14 - 75.5 12.4 16.0%
Business Condition: 5 Years 98.9 98.8 96.8 - Sep-13 98.2 -2.0 -2.1%
Durable Buying Conditions 62.7 79.9 92.3 Mar-14 - 78.3 12.4 15.5%
Current Business Conditions Indicator 99.4 98.0 97.6 - series low 98.3 -0.4 -0.4%
Real Estate Investment Indicator 95.4 96.3 109.3 Feb-14 - 100.3 13.0 13.4%
Car Purchase Indicator 61.9 70.3 84.7 Apr-14 - 72.3 14.4 20.5%
Employment Outlook Indicator 99.1 99.2 89.2 - series low 95.8 -10.0 -10.1%
Inflation Expectations Indicator 117.9 147.3 110.7 - Nov-13 125.3 -36.6 -24.8%
Current Prices Satisfaction Indicator 90.7 92.1 44.3 - series low 75.7 -47.8 -51.9%
Interest Rates Expectations Indicator 148.9 148.4 104.3 - Feb-14 133.9 -44.1 -29.7%
52. 52 MNI Russia Consumer Report - July 2014
All Russia - Overview by Age
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Age 18-34
MNI Russia Consumer Indicator 89.5 88.1 93.6 Feb-14 - 90.4 5.5 6.3%
Current Indicator 90.9 87.4 99.1 Feb-14 - 92.5 11.7 13.4%
Expectations Indicator 88.5 88.5 90.0 Apr-14 - 89.0 1.5 1.6%
Personal Finance: Current 84.7 79.4 94.9 Jan-14 - 86.3 15.5 19.5%
Personal Finance: Expected 99.0 95.2 93.4 - series low 95.9 -1.8 -2.0%
Business Condition: 1 Year 78.6 75.4 85.8 Feb-14 - 79.9 10.4 13.7%
Business Condition: 5 Years 88.0 94.9 90.8 - May-14 91.2 -4.1 -4.3%
Durable Buying Conditions 97.1 95.4 103.3 Feb-14 - 98.6 7.9 8.3%
Age 35-54
MNI Russia Consumer Indicator 85.1 90.6 91.1 Feb-14 - 88.9 0.5 0.5%
Current Indicator 84.4 96.7 98.4 Sep-13 - 93.2 1.7 1.8%
Expectations Indicator 85.6 86.5 86.2 - May-14 86.1 -0.3 -0.4%
Personal Finance: Current 74.2 84.5 82.3 - May-14 80.3 -2.2 -2.6%
Personal Finance: Expected 90.0 91.3 88.6 - series low 90.0 -2.7 -3.0%
Business Condition: 1 Year 77.6 84.6 80.3 - May-14 80.8 -4.3 -5.0%
Business Condition: 5 Years 89.3 83.7 89.8 Mar-14 - 87.6 6.1 7.2%
Durable Buying Conditions 94.6 108.8 114.5 series high - 106.0 5.7 5.2%
Age 55-64
MNI Russia Consumer Indicator 83.7 88.3 82.9 - series low 85.0 -5.4 -6.1%
Current Indicator 80.5 87.5 85.9 - May-14 84.6 -1.6 -1.8%
Expectations Indicator 85.8 88.9 80.9 - series low 85.2 -8.0 -9.0%
Personal Finance: Current 74.1 71.4 74.9 Apr-14 - 73.5 3.5 4.9%
Personal Finance: Expected 94.1 79.0 89.7 May-14 - 87.6 10.7 13.6%
Business Condition: 1 Year 74.2 87.6 68.5 - series low 76.8 -19.1 -21.8%
Business Condition: 5 Years 89.0 100.0 84.4 - series low 91.1 -15.6 -15.6%
Durable Buying Conditions 87.0 103.7 97.0 - May-14 95.9 -6.7 -6.4%
53. 53MNI Russia Consumer Report - July 2014
All Russia - Overview by Income
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
< RUB 480,000 Per Annum
MNI Russia Consumer Indicator 80.6 84.3 84.7 Mar-14 - 83.2 0.4 0.5%
Current Indicator 77.1 84.8 88.5 Mar-14 - 83.5 3.7 4.4%
Expectations Indicator 82.9 83.9 82.1 - series low 83.0 -1.8 -2.1%
Personal Finance: Current 70.2 74.6 78.7 Mar-14 - 74.5 4.1 5.5%
Personal Finance: Expected 92.8 88.3 87.8 - Apr-14 89.6 -0.5 -0.6%
Business Condition: 1 Year 68.2 76.1 70.2 - May-14 71.5 -5.9 -7.7%
Business Condition: 5 Years 87.9 87.4 88.4 Apr-14 - 87.9 1.0 1.2%
Durable Buying Conditions 84.1 94.9 98.2 Mar-14 - 92.4 3.3 3.5%
> RUB 480,000 Per Annum
MNI Russia Consumer Indicator 97.7 97.1 100.5 Apr-13 - 98.4 3.4 3.6%
Current Indicator 103.9 101.6 109.7 series high - 105.1 8.1 8.0%
Expectations Indicator 93.6 94.0 94.4 Feb-14 - 94.0 0.4 0.4%
Personal Finance: Current 94.7 89.7 98.5 Jan-14 - 94.3 8.8 9.8%
Personal Finance: Expected 97.2 95.2 94.2 - series low 95.5 -1.0 -1.1%
Business Condition: 1 Year 94.6 88.6 97.7 Feb-14 - 93.6 9.1 10.3%
Business Condition: 5 Years 89.1 98.3 91.5 - May-14 93.0 -6.8 -6.9%
Durable Buying Conditions 113.1 113.4 120.8 series high - 115.8 7.4 6.5%
54. 54 MNI Russia Consumer Report - July 2014
Methodology
The MNI Russia Consumer Sentiment Survey is a
wide ranging monthly survey of consumer confidence
across Russia.
Data is collected through computer aided telephone
interviews (CATI), with each interviewee selected
randomly by computer. At least 1,000 interviews are
conducted each month.
The survey adopts a similar methodology to the
University of Michigan survey of U.S. consumer
sentiment.
The MNI Russia Consumer Indicator is derived from
five questions, two on current conditions and three on
future expectations:
1) Current personal financial situation compared to a
year ago
2) Current willingness to buy major household items
3) Personal financial situation one year from now
4) Overall business conditions one year from now
5) Overall business conditions for the next 5 years
Indicators relating to specific questions in the report
are diffusion indices with 100 representing a neutral
level, meaning positive and negative answers are
equal. Values above 100 indicate increasing positivity
while values below show increasing negativity.
55. Insight and data for better decisions
Discovering trends in Emerging
Markets
MNI’s Emerging Markets Indicators explore attitudes, perspectives and confidence
in Russia, India and China. Our data and monthly reports present an advance
picture of the economic landscape as perceived by businesses and consumers.
Our indicators allow investors, economists, analysts, and companies to identify
economic trends and make informed investment and business decisions. Our data
moves markets.
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