Consumption and industrial output continued to decline in November

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/52

​Rosstat reports that the seasonally adjusted volume of retail sales contracted in November for the eleventh month in a row this year. Retail sales were down nearly 13 % y-o-y. The 12-month drop in food sales was over 11 % and non-food goods nearly 15 %. The magnitude of the drop in part reflected slightly above normal sales a year ago, when rapid ruble depreciation and a pick-up in inflation started to give a rise to a spending spree among households. Private consumption this year has held at about the same level as four years ago while it has been about 10 % higher than in 2008 just before the previous economic crisis struck.

Rosstat further noted that seasonally adjusted industrial output fell in November. Production of extractive industries in November was unchanged from a year earlier. The drop in manufacturing production, however, followed the decline set in September and October, and the volume of production in November was down about 5 % y-o-y. The impact of increased defence spending that supported manufacturing industries earlier this year is likely fading. First-half defence spending grew on-year by over a third, but since autumn defence spending has fallen.

Industrial output (seasonally and workday-adjusted)
201552r1.png
Source: Rosstat.

Show weekly Review 2015/51