Industrial production inched up by 0.1% y/y and increased 0.6% m/m in August, 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 since then is showing y/y growth close to zero.

In Jan-Aug overall, industrial production remained stagnant at 0% y/y vs. 3.1% y/y growth seen for the same period of last year.

Industrial production was expected to bounce slightly from a decline in May. However, poor external demand, weak domestic spending and stalled investment contributed to more pessimistic expectations of industry balancing between stagnation and recession.

In August, only extraction industries posted growth of 2% y/y (slowing from 3.1% y/y in June). Manufacturing and utilities industries contracted by 0.2% y/y and 2% y/y respectively. In Jan-Aug 2013 overall, manufacturing was down by 0.2% y/y, utilities contracted by 0.9% y/y, while extraction inched up by 1% y/y.

Oil extraction gained 0.7% y/y, natural gas extraction inched by 0.4% y/y, and coal mining declined by 1.8% y/y in Jan-Aug.

As reported, HSBC Markit-compiled the manufacturing PMI HSBC in August 2013 remained below the no-change mark of 50.0 for the second month in a row. The index inched up to 49.4 from 49.2 seen in July (the lowest since December 2009). In August despite a slight pickup in output the downturn in overall conditions in manufacturing continued: new orders rose modestly, export orders stagnated, and employment in the sector declined at a fastest rate in four years.