Russian Industry in January 2021: Recovery of Demand Forecasts

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

The dynamics of demand, moderately negative in comparison with the pessimistic forecasts, allowed the industry to avoid a reduction in output in January, to revise the production and sales plans for the better. However, according to regular polls by the Gaidar Institute, these factors also resulted in the intensive increase in prices for the enterprises products compared to the previous month and contrary to forecasts.

In December, the industry expecting a deteriorating epidemiological situation and a drop in demand, was prepared to sacrifice growth of prices to maintain sales. However, this was not required in January, enterprises were able to raise their prices and revise the forecasts for their changes. The personnel policy of industrial enterprises demonstrates great resistance to the impacts of the actual and expected epidemiological situation.

Key words: Russian industry, demand, inventories, stock of input and materials, output, prices, personnel.

JEL-codes: L16, L60.