Russia: Industrial output growth eases in February
Industrial output expanded 6.3% in year-on-year terms in February, which was a softening from January’s 8.6% increase. February’s figure was largely due to a deterioration in manufacturing output growth. In addition, mining and quarrying output weakened.
On a seasonally-adjusted monthly basis, industrial production fell at a slightly softer rate of 0.6% in February (January: -0.7% mom). Meanwhile, the trend improved, with the annual average growth of industrial production coming in at 7.1% in February, up from January’s 6.2% reading.
Despite still-healthy February outturn, the industrial sector prospects turned increasingly bleak in recent weeks. Aggressive international sanctions in response to Russia’s invasion of Ukraine are set to deal a blow to the country’s mining sector, while the exodus of Western companies is expected to hurt manufacturing activity.