Funeral business is the only sector growing in the civilian economy of the Russian Federation, — intelligence

This was reported by the Foreign Intelligence Service of Ukraine.

According to the agency, industrial production in Russia increased by 1.4% in the first half of this year compared to the same period last year, mainly due to government orders for enterprises related to the military-industrial complex.

The largest growth was recorded in the production of special-purpose vehicles (3.4 times more compared to 2022), electronics and optics (2.1 times), and metal products (1.5 times).

In the civilian sector, the only segment that is growing is funeral services. Against the backdrop of demographic decline and losses in the war against Ukraine, this market segment grew by 16% in half a year, with its volume reaching almost 425 million dollars in January-April.

Other sectors of civilian industry, on the contrary, are showing a decline. In June, the overall industrial production index decreased by 1.9%, with the largest drops in civilian transport production (-26.8%), electronics (-8.6%), and leather goods (-4.7%).

In July, the industrial optimism index fell below the levels of 2016 and 2022. 61% of the surveyed experts indicated "significantly below normal" production volumes. For the first time since August 2022, the balance of expectations regarding output became negative.

Against the backdrop of the automotive market decline, the company "KamAZ," following "GAZ" and "AvtoVAZ," is switching to a four-day workweek. Simultaneously, the export of sunflower oil decreased by 38% year-on-year.

The number of companies planning workforce reductions has doubled: from 6.9% in January to 11.5% in June. The most notable reductions are in mining, machine-building, and pharmaceuticals.

"The current dynamics indicate deep structural imbalances that threaten the loss of technological potential in the civilian sector. Meanwhile, the State Duma is calling for punishing citizens for ’discrediting’ domestic products, interpreting criticism as ’unpatriotic,’" the intelligence agency notes.