Russia: Decline in industrial activity softens in October

Industrial output dropped 2.6% in year-on-year terms in October, which was above September's 3.1% decrease. October's softer drop was largely driven by a weaker contraction in manufacturing production. In contrast, mining and quarrying production fell at a sharper pace. The overall result marked the seventh consecutive month of shrinking industrial activity.

On a seasonally adjusted monthly basis, industrial output rebounded, rising 0.7% in October (September: -0.5% mom). Meanwhile, annual average industrial production growth fell to 1.5% in October (September: +2.4%). This signals a worsening trend in the industrial sector.

FocusEconomics panelists project industrial output to slump 3.1% in 2023, which is down 0.1 percentage points from last month’s forecast. For 2024, the panel expects industrial production to increase 1.1%.