Business surveys confirm ongoing economic rebound

Economic activity continued to recover between April and May 2021, reports the new issue of Regional Economy: Commentaries by Bank of Russia Main Branches.

Monitoring data shows that more companies record revenue growth than decline — for the first time since the start of the pandemic.

In April, consumer prices grew at a slower pace, which was still elevated as demand continued to expand and costs went up.

Growth in corporate price expectations persisted against the backdrop of rising global commodity prices, strengthened domestic and external demand and a shift to domestic tourism.

Signs of a recovery emerged in investment demand. New production lines were launched in car manufacturing and in the light and food industries. As external demand expanded, the sales geography of metallurgical and metal processing products diversified. Recovering manufacturing sectors pushed demand for workforce higher. Loans to businesses registered higher demand on the expectations of a rise in interest rates.

Growth in consumer activity was essentially concentrated in the food and non-food sectors. The services sector has yet to reach its pre-pandemic performance.

This issue features insights in SME activity, tourism developments and passenger transport trends.