Russia's industrial production continues stagnation in September.

By bne IntelliNews October 15, 2013

Industrial production inched up by 0.3% y/y and slipped by 0.7% m/m in September, the data by RosStat shows. Since a decline of 1.4% y/y seen in May the growth of the indicator is close to zero.

In Jan-Sep, industrial production remained stagnant at 0.1% y/y vs. 2.9% y/y growth seen for the same period of last year. In Q3, industrial output was down by 0.1% y/y vs. 2.5% y/y growth for the same quarter of last year.

Industrial production was expected to bounce slightly from a decline in May. However, poor external demand, weak domestic spending, stalled investment and lately also uncertainty on how the government is going to address the current slowdown contributed to more pessimistic expectations. The industry balances between stagnation and recession.

In September, only extraction industries posted growth of 1.7% y/y (slowing from 2% y/y in August). Manufacturing and utilities industries contracted by 0.8% y/y and 0.2% y/y respectively. In Jan-Sep, manufacturing was down by 0.3% y/y, utilities contracted by 0.5% y/y, while extraction inched up by 1.1% y/y.

Oil extraction gained 0.8% y/y, natural gas extraction inched by 1.1% y/y, and coal mining declined by 2.5% y/y in Jan-Sep.

Markit-compiled HSBC manufacturing PMI in September remained below the no-change mark of 50.0 for the third month in a row, making Q3/13 the weakest quarter since Q4/09. The index remained flat m/m at 49.4. The index confirms the stagnation of manufacturing: new order growth was marginal, input and output prices rose at historically weak rates, new export work declined, and employment decline was the fastest in years.

Related Articles

Russia’s central bank reduces key rate in surprise decision

The Central Bank of Russia (CBR) reduced the key lending rate by 0.25 percentage points to 9.75% on March 24, despite broad market expectations of no change this month. The ruble strengthened to a ... more

Ex-Trump aide Manafort reported to be long-term Putin lobbyist

Paul Manafort, US President Donald Trump's former election campaign manager, struck a covert deal with Kremlin-affiliated Russian oligarch Oleg Deripaska in 2006 to promote the interests of President ... more

Russian central bank governor Nabiullina to be nominated for further five-year term

The governor of the Central Bank of Russia (CBR), Elvira Nabiullina, will be nominated for another five-year term, President Vladimir Putin told the country’s top banker on March 22. The nomination ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss