LBС-RAEC Index results for February

The Russian Association of Electrical Companies and Lighting Business Consulting presented the results of the survey on the Electrical Industry Business Confidence Index for February, 2020.

The LBС-RAEK index in electrical industry in February, 2020 increased by 3 points versus January, amounting to “+4” points. Respondents from leading electrical engineering companies positively assess the state of affairs in electrical industry in February.

The largest impact on the Index was made by the decrease in the component stock balances of finished goods, which means that the companies have decreased inventory balances. According to the respondents, the following has slightly increased: demand and sales (shipments) for the month. The most negative factor in February was the decline in release or sales plans.

Estimates of the components of the LBС-RAEC Electrical Engineering Index in February, 2020:

• demand (number of requests) “+3” points (growth by 3 points compared to January)

• sales (number of shipments) “+2” points (growth by 1 point compared to January),

• warehouse balances of finished products for the month – “+2” * points (decrease by 5 points compared to January),

• the number of personnel is “0” points (did not change by January),

• plans for the release (sales) of finished products for the next 3 months – “0” points (decrease by 6 points against January).

Answers to optional questions:

According to the respondents, sales in February, 2020 were about the same as in February of the last, 2019, year - the value of the component is “0” points.

The “Public sector sales” component decreased by 3 points. The value of the component is “-1” point.

The “Accounts receivable” component of the companies participating in formation of the LBС-RAEC Index increased by 2 points, i.e. the number of unpaid debts increased. The value of the component is “+1” point **.

* - in the parameter “Warehouse for finished products”, the growth of warehouse balances is a negative factor

** - an increase in accounts receivable - a negative factor