LBC-RAEC Index Results for May 2019

The Russian Association of Electrotechnical Companies and Lighting Business Consulting have presented the results of the Entrepreneur Confidence Index Survey in electrotechnical industry for May 2019.

ECI is an indicator that allows, based on the answers of company executives about product balance, demand and their predictions regarding further output, to characterize economic activity and provide pre-emptive information about possible fluctuations of economic variables.

The LBC-RAEC Index in the electrotechnical industry for May decreased by 12 points compared with April, to the level of "-2" points. It means that most of the participants have predominantly pessimistic opinion about the industry. 

A decrease in demand (applications, orders, customer appeals) and sales has the greatest impact on the decline in the overall assessment of the industry. Besides, the respondents note a slight decrease in output (sales) plans for finished products. 
Two components of the LBC-RAEC Index have positive dynamics. These are the number of employees (growth by 1 point) and stock balance of finished products for the month. The “Stock balance of finished products for the month” component decreased by 5 points. This means that fewer goods are left in warehouses, which is a positive factor in the calculation of the Index.