Russia: Industrial production expands modestly in April
May 18, 2016
Industrial production expanded in April and recovered the lost ground in March. Data from the Federal Statistics Service (Rosstat) showed that industrial production expanded 0.5% annually in April, which rebounded from the 0.5% decrease observed in March and fared better than the 0.5% contraction the markets had expected.
The increase in April reflected that manufacturing production rebounded and expanded 0.6% in April (March: -2.8% year-on-year). Mining and quarrying increased 1.7% in April and, while it was a deceleration over the 4.2% rise seen the previous month, it marked a fifth consecutive month of expansion. Conversely, the production and distribution of electricity, gas and water took a sharp hit in April.
Sequential data adjusted for seasonal factors showed that growth in industrial production flattened in April, which came in below the revised 0.3% increase tallied in Mach (previously reported: +0.4% month-on-month).
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 3.4% in March to minus 3.0% in April.
Author: Ricardo Aceves, Senior Economist