The index of business activity of Russian small and medium-sized businesses dropped to 47.1 points in the fourth quarter of 2018, according to RBC quoting the quarterly study of the “Support ofRussia”, Magram Market Research and Promsvyazbank.

      An index value of less than 50 points indicates a decline in business activity of the sector; the indicator fell below this mark in the third quarter of last year.

      As the representatives of the Magram agency note, business expectations for the fourth quarter are the worst in the last five years; entrepreneurs are pessimistic about the prospects of their own companies and the entire Russian economy.

      The mood of the sector was influenced by such factors as the increase in VAT, acceleration of inflation, fall in real incomes of the population, reduction of benefits and preferences for businesses, as well as the increase in the state share in the economy.

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