Russia's industrial production declines 0.7% y/y in July.

By bne IntelliNews August 15, 2013

Industrial production declined by 0.7% y/y and increased 0.9% m/m in July, the data by RosStat shows. In March and April, the indicator posted 2.6% y/y and 2.3% y/y growth, respectively, but then dived by 1.4% y/y in May and inched by 0.1% y/y in June.

In Jan-July overall, industrial production remained stagnant at 0% y/y vs. 3.2% y/y growth seen for the same period of last year.

June’s and July’s industrial production was expected to bounce slightly from a decline in May. However, poor external demand, weak domestic spending and stalled investment contributed to expectations of poor growth and prolonged stagnation.

In July, only extraction industries posted growth of 0.4% y/y (slowing notably from 3.1% y/y in June). Manufacturing and utilities industries contracted by 1.5% y/y and 1.8% y/y respectively. In Jan-July 2013 overall, manufacturing was down by 0.2% y/y, utilities contracted by 0.8% y/y, while extraction inched up by 0.9% y/y.

Oil extraction gained 0.7% y/y, natural gas extraction declined by 0.4% y/y, and coal mining remained flat y/y in Jan-July.

As reported, HSBC Markit-compiled the manufacturing PMI also declined in July below the no-change mark of 50.0 to 49.2. This is the first time the indicator has a negative reading since August 2011 and the lowest value since December 2009. The index was lower than 50.9 expected by the Bloomberg survey.

Related Articles

Russian retailer X5 to list in Moscow

Russia’s leading supermarket chain X5 Retail Group intends to list shares on the Moscow Exchange (MOEX) as GDRs in the autumn, the company said on July 26. The company said its key goal was to ... more

Azerbaijan's Aliyev, Russia's Putin hold surprise meeting in Sochi

Azerbaijani President Ilham Aliyev and Russian President Vladimir Putin held an unannounced meeting in Sochi on July 21, according to RIA Novosti press agency. The two heads of state reportedly ... more

Siemens fumes as worst suspicions on Crimea turbines confirmed

German technology major Siemens said on July 21 it has "credible evidence" that all four gas turbines supplied for a power plant in the south of Russia were locally modified and illegally supplied ... more

Dismiss