Russia: Industrial output contracts in September
October 17, 2016
Russian industrial production shrank in September, falling at the fastest pace seen in 8 months. Output decreased 0.8% year-on-year, which notably undershot the 0.6% rise the markets had expected and the 0.7% expansion seen in August.
September’s downturn was due to the all-important manufacturing sector, which swung from a 0.1% expansion in August to a 1.6% decrease in September. In contrast, mining and quarrying production picked up from August’s 1.8% expansion to a 2.1% increase and electricity, gas and water supply output accelerated to a 1.4% expansion (August: +1.3% year-on-year).
Data adjusted for seasonal factors showed that industrial production contracted 0.3% over the previous month in September, which contrasted the 0.5% expansion recorded in August.
Meanwhile, the trend continued to point to a slow recovery in the sector. The annual average variation in industrial production rose from minus 1.2% in August to minus 0.9% in September.
Author: Ricardo Aceves, Senior Economist