Russia: Pace of decrease in industrial production continues to soften
December 15, 2015
Industrial production continued to contract in November, but the pace of decrease softened. Industrial output contracted 3.5% in November over the same month of the previous month, which was marginally better than the 3.6% decrease observed in October. The reading, nonetheless, came in below the 3.0% decrease the markets had expected. Industrial production has contracted for 11 consecutive months.
November’s contraction stemmed from a further decrease in manufacturing production as well as in electricity generation, gas and water management. In addition, mining and quarrying swung from a 1.4% increase in October to a 0.1% contraction in November.
Sequential data showed that industrial production contracted 0.6% over the previous month in seasonally-adjusted terms in November. The result followed the 0.2% contraction registered in October.
With November’s decrease, the trend continued to suggest that a quick recovery in Russian industrial production is not in the cards in the coming months. The annual average variation in industrial output declined from minus 2.4% in October to minus 2.7% in November, which marked the slowest rhythm since March 2011.
Author: Ricardo Aceves, Senior Economist