Russian Industry in December 2019

Sergey V. Tsukhlo – Head of Business Surveys Department of the Gaidar Institute, Candidate of Economic Sciences (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The slowing demand momentum and increasing excess stocks of finished products were the reason why, in December, industrial enterprises had to resort to more aggressive output cuts, as stated in the business survey findings. However, the demand forecasts and production plans in the last month of 2019 displayed the same optimism level as before. Industry demonstrated higher concerns in connection with the cost of machinery and equipment, and appears to be less concerned than before with the current macroeconomic situation’s predictability. According to enterprises, industry needs to be protected from competing imports. The credit-related issues, from the point of view of the investment plans of industrial enterprises, are relatively unimportant.

Key words: Russian industry, demand, output, employment, finished goods inventory, industrial lending, personal, investments, actual changes and expectations.