Russia: Industrial output contracts more than expected in July
August 16, 2013
In July, industrial production fell 0.7% over the same month last year, which contrasted the 0.1% drop seen in June and exceeded the 0.2% contraction expected by the markets. The result stemmed from larger contractions in manufacturing and in electricity, gas and water.
On a month-on-month seasonally adjusted basis, industrial output fell 0.9% (June: +1.2% mom). Meanwhile, average annual growth in industrial production fell to 0.8% from 1.1% in June.
The government sees industrial output expanding 3.4% in 2013. FocusEconomics Consensus Forecast panellists are less optimistic and expect industrial production to increase 2.5% in 2013, which is down 0.3 percentage points from last month's forecast. For 2014, the panel expects industrial production growth to accelerate to 3.2%.
Author: Armando Ciccarelli, Head of Data Solutions