Russia: Industrial production continues its modest expansion in May
June 16, 2016
Data from the Federal Statistics Service (Rosstat) showed that industrial production expanded 0.7% annually in May, which was up from the 0.5% increase seen in April and below the 1.0% increase market analysts had expected.
The increase in May reflected a turnaround in the electricity, gas and water sector, which grew 2.1%, contrasting a 4.0% contraction in April. Mining and quarrying grew 1.5% (April: +1.7% year-on-year), marking the sixth consecutive month of expansion. Manufacturing grew 0.3% in May after the 0.6% expansion recorded in April.
Sequential data adjusted for seasonal factors showed that industrial production contracted 0.3% in May, which came in below April’s flat reading.
As a result of April’s increase, the trend continues to point to a slow recovery in the sector. The annual average variation in industrial production rose from minus 3.0% in April to minus 2.5% in May.
Author: Christopher Mc Innes, Economist