Modest growth in Russian industrial output continues

The volume of industrial output rose by 2.4 % y-o-y in November. The pace of growth was in line with the industrial output trend of several years. Output growth remained quite unbalanced, however, with the output volume of extractive industries rising 7.8 % y-o-y, while the volume of other manufacturing output was unchanged from a year earlier. The multi-year decrease in construction turned into growth in October. November construction activity was up 4.3 % y-o-y.

Real disposable household incomes have shrunk in recent years. In November, they were down by nearly 3 % from a year earlier. Retail sales, in contrast, grew y-o-y by 3 %. However, they were still 10 % lower than in summer 2014 just before the collapse of oil prices and the ruble’s exchange rate.

Industrial output and retail sales

Sources: Rosstat, BOFIT.