Markit: Russia’s private business confidence still high in June

MOSCOW, Jul 17 (PRIME) -- Russia’s private business confidence remains high in June, researcher IHS Markit said in a research note on Monday.

“The latest IHS Markit Business Outlook Survey indicates ongoing optimism in the Russian private sector in June. The degree of confidence in future business activity is the second-strongest since February 2014. At +25%, the net balance of firms forecasting growth is down from +28% and signals a slight dip in confidence since February,” Markit said quoting economist Sian Jones.

“Expectations regarding prices signal greater certainty towards an upturn in cost burdens and output prices over the next 12 months. The net balance of firms forecasting input price inflation has risen from +26% in February to +33% in June.”

“Optimism within the Russian economy remains solid and slightly above BRIC averages for business activity and new business. Following robust responses in the last two outlook surveys, confidence looks to have recovered from the lows over the past three years.”

Forecasts of inflationary pressures over the next year show signs of uncertainty regarding the strength of the ruble. “Even so, a further solid forecast for new business and an anticipated rise in capex suggest firms in the Russian private sector are looking towards a recovery in the near-term and are planning for a brighter future,” Jones said.

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