Russian industrial output stalls in October

Russian industrial output stalls in October
Russian industrial production stalled in October and fell to zero
By bne IntelliNews November 17, 2017

Industrial output in Russia stalled in October failing to show growth for the first time since March and posting 0% year-on-year growth and slipping by 0.1% in month-on-month seasonally adjusted terms, Rosstat agency said on November 16.

Following the disappointing third-quarter GDP numbers, industrial output statistics in October show that 2.1% GDP growth goal of the Russian government for 2017 is not going to be a slam-dunk.

Analysts surveyed by Reuters expected industry to expand by 1.1% y/y in October after 0.9% growth seen in September.

In January-October overall industrial output expanded by 1.6% y/y, slowing from 1.8% y/y seen in January-September.   

The negative dynamics of industrial output was due to falls in all components of the indicator, with utilities contracting by 2.1% due to warmer weather. Extraction slipped by 0.1% for the second month in a row, due largely to compliance with Opec+ oil output cuts. 

Manufacturing showed only 0.1% gain in October as compared to 1.1% seen in September, which actually indicates decline given that October 2017 had one more working day more as compared to the same month of 2016.

Previously also manufacturing PMI numbers for October showed that while recovery in the output continued, it remains shaky from month to month.

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