What’s behind the slump in Russia’s construction sector?

Early signs suggest that Russia’s economic recovery may have stalled in the second quarter due largely to renewed weakness in the construction sector. This seems to be the result of financial problems at construction companies combined with the effect of the fiscal squeeze on public investment. The weakness in construction looks set to persist for the rest of this year. While this won’t derail the recovery altogether, it will ensure that it’s extremely slow-going.