In Russia, the worst indicator of the industry has been recorded since the beginning of the war

The Russian production sector activity in July in July has reduced maximum speed since March 2022, and business confidence has fallen to almost a minimum of three -people. The Reuters reported this on August 1 with a reference to a survey of businessmen conducted by S&P Global.

The Procurement (PMI) Managers Index for the Russian Federation production sector in July fell to 47.0 from 47.5 in June. The mark below 50 points indicates a decline in business activity, higher – growth.

The S&P Global Note that the results of the study suggest a significant deterioration in the state of the Russian production sector.

The second sharp decline in several months is caused by customer’s demand and customer’s financial difficulties, which are seen in both production volume and new orders.

“The reduction in production volumes is usually associated with decreasing the flow of new orders and weak demand against the background of problems with ensuring financing and receiving payments,” S&P Global said.

Russia’s significant costs after the start of a full -scale war against Ukraine in February 2022 contributed to the growth of the industry sector.

But the growth of industrial production began to slow down last year, and the cost of borrowing was 20 years old for months. Last week, the central bank of the Russian Federation reduced the main interest rate of 200 major points to 18% per year.

The volume of new orders has been reduced to four hours in five months, and the decline rate has accelerated to the maximum since March 2022. However, the volume of new export orders for the first time in five months has increased slightly, explained by an increase in demand in existing markets.

Business confidence has remained positive, but has dropped a minimum since August 2022.

“Although companies hope that investing in new products and equipment will support production growth, economic uncertainty and a reduction in customer purchase power have weakened positive feelings,” notes in global S&P.

Remember that in Russia we decided to obtain economic and trading data with foreigners to tell the secrets. Now, to calm the society, only selective indicators will be published.