Russia's investment momentum fails to revert

Despite some room for idiosyncratic tweaks in capital expenditure programmes, the overall backdrop for investment has not improved significantly according to business confidence surveys. The outlook for internal and external demand continues to dampen sentiment, while the high ruble volatility that dominated throughout September has likely halted purchasing equipment and building of inventories. 

"We noted a slight pickup in capacity utilisation across the industrial segment (to 63.1% in September vs 62.1% YTD on average) which did not favour newer capital investment. Thus, we anticipate FAI to run close albeit slightly below the August estimates - at -7.0% yoy", says Societe Generale.