Markit: Russia business confidence rises to 1-year high in October

MOSCOW, Nov 14 (PRIME) – The Russian business confidence index increased to a one-year high of +18% in October, but although up from June’s +16%, optimism in the sector remains weaker than the long-run series average, Markit said in its Markit Russia Business Outlook published on Monday.

“According to panellists, factors likely to boost output over the coming year include the development of new products, accessing new foreign markets, modernizing equipment and employee training. However, companies are aware that a few threats could impede business activity, especially with regards to higher taxation, a lack of available credit and the instability of the ruble,” the document read.

The improving performance of the Russian economy during 2016 so far has helped boost optimism in the private sector, as forecasts of business activity growth have picked up to a one-year high. Stronger PMI data in both the manufacturing and service sectors has been reflected in higher predictions for new business, profits, business revenues, capex and employment, Markit cited economist Samuel Agass as saying.

“That said, all of the mentioned categories remain subdued in comparison to their respective long-run averages, indicating that companies are still short of regaining full confidence towards the sector’s future health,” Agass said.

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