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 offers Tajikistan observer status within EEU trade bloc

Russia has offered Tajikistan observer status in the Eurasian Economic Union (EEU), Avesta news agency reported on April 20, citing remarks made by Russia’s First Deputy Prime ... more

Multilateral lender IIB to place its inaugural transaction in Czech koruna

Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in ... more

Latvia to probe tram tender awarded to Russian-controlled Railvec

Latvia’s state security service, the Constitution Protection Bureau (SAB), plans to scrutinise a tender to deliver trams to the country’s second-largest city won by a Russian company with ties to ... more