HSE experts recorded a decline in the level of business activity in the regions

The composite index of regional economic activity (REA), which is monitored by the HSE Development Center, fell in June to the lowest values ​​since the beginning of the sanctions crisis and amounted to 39.8%, writes RBC with reference to the data center.

Analysts calculate the REA index based on monthly Rosstat data on the dynamics of industry, construction, retail and wholesale trade, and paid services to the population by region.

At the beginning of this year, economic activity was growing in more than 70 of the 82 regions of Russia covered by the study. In June, 70% of the subjects of the Federation showed a decline, and the deterioration of the situation was observed in three of the five most important industries, the Higher School of Economics found out.

The largest decline compared to 2021 was recorded in retail and wholesale trade, while in industry and construction, growth and decline in the index was observed with approximately equal frequency across regions. Paid services to the population became the only sector in which the progress of business activity was revealed.

According to HSE analysts, among all federal districts, the largest decline in the index was recorded in the Urals and Volga regions, while growth continued only in the Far East and North Caucasus districts. The decline in all five sectors was shown by four regions: Kaluga and Lipetsk regions, Mari El and Chuvashia.

The decline in business activity in the regions is associated with the depletion of previously formed stocks, violation of supply chains and sanctions imposed that limit the supply of equipment, materials and components, said RBC Maxim Pershin, Director of the ACRA Sovereign and Regional Ratings Group. According to him, this affects manufacturing industries, in particular, mechanical engineering, most of all.

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