Russia: Russia's industrial production rebounds modestly in February
March 16, 2016
Industrial production data for February showed that, for the first time in a year, output was on the upswing. Industrial production increased 1.0% over the same month last year, which surprised substantially on the upside, as the reading overshot the 2.1% contraction the markets had expected and the 2.7% decrease observed in January.
February’s result marked the first increase in year-on-year terms, which following 12 consecutive months of contraction. The rebound mainly reflected a marked acceleration in mining and quarrying, while the pace of contraction in manufacturing moderated. Electricity generation lost momentum in February.
Sequential data showed that industrial production increased in February a seasonally-adjusted 0.1% over the previous month, which followed the 0.9% expansion registered in January.
With January’s increase, the trend changed course. The annual average variation in industrial production rose from minus 3.7% in January to minus 3.5% in February, which suggests that the deterioration in industrial production bottomed out in January and a return to marginal growth is likely in the coming months.
Author: Ricardo Aceves, Senior Economist