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Business Activity of Russian SMEs is Close to Stagnation
11.11.2019 10:15
Business Activity of Russian SMEs is Close to Stagnation

According to the results of the third quarter of 2019, the value of the index of business activity of small and medium-sized enterprises (RSBI) in Russia fell to 50.9 points. Recall that if the index falls below 50 points, this indicates a decrease in business activity.

      The current rating indicates that the business activity of the SME sector in Russia is close to stagnation. The indicator fell to 50.9 from 52 points in one quarter. The greatest pessimism is demonstrated by the production sector, where the indicator fell to 49.4 points from 53.9; in the service sector, the indicator is growing - from 50.8 to 52.9 points. 

      In the third quarter, three of the four components of the index declined - sales, personnel index and investment index. The availability of financing index did not show any changes. According to Alexander Chepurenko, professor at the Department of Sociology at the Higher School of Economics, the majority of SMEs operate on the basis of population demand, and when household incomes are not growing, this limits the opportunities for companies to develop.

Author: Anna Dorozhkina

Tags: Russian business Russian economy    

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