Russia: Industrial production contracts to lowest level in two years
March 16, 2015
According to the Russian statistical office, industrial production contracted 1.6% year-on-year in February. The reading, which contrasted the 0.9% expansion tallied in January, exceeded the 0.6% fall the markets had expected and was mainly the result of a plunge in manufacturing output and a deterioration in growth in public utilities. February’s contraction represented the sharpest contraction in output since February 2013.
A month-on-month comparison confirms the deterioration suggested by the annual data. Industrial production contracted a seasonally-adjusted 0.7% in February, which followed the 1.8% decrease observed in January.
As a result of the contraction seen in the annual data, annual average growth in industrial production fell 1.7% in January to 1.4% in February.
Author: Ricardo Aceves, Senior Economist