Russia: Industrial output falls at sharpest rate since February 2021 in April
Industrial output fell 1.6% compared to the same month a year earlier in April, which contrasted March’s 3.0% increase. The result marked the worst reading since February 2021 and largely reflected international sanctions against the Russian economy as well as exodus of foreign capital from the country. Looking at the subcomponents, April’s figure was largely due to a deterioration in manufacturing production, as it fell at the steepest pace since February 2021. In addition, mining and quarrying production weakened.
On a monthly basis, factory output fell 1.8% in seasonally-adjusted terms in April, which was below March’s 1.1% fall and marking the worst result since January 2021. Meanwhile, annual average industrial production growth fell to 6.4% in April (March: +7.2%). This signals a worsening trend in the industrial sector.
Looking ahead, industrial activity is expected to contract further in the coming months, as the fallout from the Russia-Ukraine war worsens. The impact of international sanctions, self-restrictions and weaker business environment will likely drive a marked contraction in industrial activity this year.