Russia: Decline in industrial output softens in January
Industrial production dropped 2.4% year on year in January (December: -4.3% yoy). The smaller contraction was primarily due to softer contractions in manufacturing activity and electricity, gas, steam and air conditioning supply output. That said, the mining sector saw output contract at a sharper pace at the outset of the year. the overall downturn reflected effects of Western sanctions and likely labor shortages due to military mobilization and mass emigration of male population.
On a monthly basis, industrial output dropped 0.6% in seasonally adjusted terms in January, contrasting December’s 0.1% expansion. Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 1.2% in January, down from December’s minus 0.3% reading.