Russian business optimism strongest since June 2013Staff Writer | November 14, 2017
According to data from the latest IHS Markit Russia Business Outlook survey, private sector firms are the most optimistic regarding future business activity in over four years, reflecting the prospect of larger client bases and new product development.
Russia IHS Markit Russia Business Outlook
The predicted upturn is expected to be broad-based, with both manufacturers and service providers signalling a rise in positive sentiment.
Forecasts for output growth in the next year have been influenced by the modernisation of production processes, diversification, and greater market development.
Panellists note, however, that there are threats to future expansion.
These include lower customer demand and increased competition.
Companies in both the manufacturing and service sectors anticipate a solid expansion in new business in the next year, with overall positive sentiment the jointhighest since early-2014.
Goods producers’ expectations for new order growth are the strongest in over four years.
Amid strengthened optimism surrounding future business activity, firms expect capital expenditure to rise solidly in the next year.
Moreover, the degree of optimism on this front is the joint-highest in four years with firms set to modernise their machinery and diversify their product bases. ■