The Economy of the Russian Federation Has Fallen to a Yearly Minimum: What the PMI Index Showed

Decline in Business Activity of Russian Companies

According to hvylya.net: The Center for Counteracting Disinformation recorded a decline in business activity of Russian companies in September. According to information from the Center, the PMI index, which reflects the state of industry and services, decreased to 46.6 points - the lowest level since October 2022.

Sharp Increase in Costs for Russian Companies

Russian companies are facing a sharp increase in costs due to rising credit prices, increased taxes, and sanctions measures. At the same time, it is becoming increasingly difficult to pass these costs onto the final consumer: prices are rising more slowly than production costs.

'This is yet another consequence of the Kremlin focusing on the military economy. The conditions of a full-scale war against Ukraine are leading to a redistribution of resources in favor of defense, while the sector of 'peaceful' business finds itself in a state of stagnation,' emphasized the Center.

Optimistic Forecasts of the Russian Government

The Russian government is making optimistic forecasts about economic development, however, real indicators show that the Russian economy is in deep stagnation.

The facts presented in the news indicate a worsening economic situation in Russia. The decline in business activity and the rise in costs for Russian companies may have serious consequences for the country's economy. Despite optimistic forecasts, the Russian government is facing real challenges in economic development.