Russia: Industrial production plummets in November
December 18, 2017
Industrial activity deteriorated notably in November, recording the largest contraction since October 2009. According to the Federal State Statistics Service (Rosstat), industrial output fell 3.6% annually, contrasting October’s flat growth. The result significantly undershot market analysts’ expectations of a slim 0.2% expansion and was driven by a broad-based deterioration across all sub-sectors of the index. The downturn in the manufacturing sector was particularly sharp, and output fell 4.7% annually. A high base effect from November 2016 also weighed on the overall reading.
The trend continued to point down, and annual average growth came in at an over one-year low of 1.0% in November (October: +1.6%). A month-on-month comparison confirmed weakness in the sector: Industrial production dropped 1.4% over the previous month (October: -0.1% month-on-month).