Russia: Industrial output increases in August
September 15, 2016
Growth in Russian industrial production returned to positive territory in August, following an abrupt contraction in July. Output increased 0.7% year-on-year, overshooting the 0.5% rise the markets had expected and recovering the ground lost in July when output fell 0.3%.
Production in the all-important manufacturing sector swung from a 1.5% contraction in July to a 0.1% increase in August, making it the main driver of industrial production. In addition, mining and quarrying matched July’s 1.8% expansion in August. Meanwhile, other sub-components turned out to be stronger: electricity, gas and water supply accelerated to a 1.3% expansion (July: +0.8% year-on-year).
Data adjusted for seasonal factors showed that industrial production expanded 0.5% over the previous month in August, which contrasted a 0.9% contraction in July.
Due to the increase, the trend continues to point to a slow recovery in the sector. The annual average variation in industrial production rose from minus 1.6% in July to minus 1.2% in August.
Author: Ricardo Aceves, Senior Economist