Figure of the day: –14%

was the level to which the business confidence index in building materials production fell in May of this year. These data are presented in a new Monitoring the Business Climate in the Construction Sector study that was conducted in the second quarter of 2015 by the Centre for Business Tendency Studies at the HSE Institute for Statistical Studies and Economics of Knowledge.

This was the worst result among other industrial sectors (the index in manufacturing is -7% on average). The index was lower than in the chronic outsiders — ‘machine builders’ and ‘textile manufacturers’ — and it has been declining for the fifth consecutive month. The industry has seen declining demand, as well as operational and financial performance.

The sufficiently sharp deterioration of the business climate in building materials production speaks to the depressed condition of the construction sector itself. That said, many manufacturers of building materials are monopolists in regional markets and attempt to compensate for the decline in primary operating performance indicators with price increases for their products, which only aggravates the situation and creates additional difficulties for builders.

Source: HSE website