Russian output shows transient spike in December

Industrial output growth accelerated in December, particularly in a couple of manufacturing branches. Some experts suggest that the acceleration largely reflected the ruble’s depreciation, which drove substitution of imports with domestic products. Mineral extraction sector output continued to show fairly good growth, and was up about 3 % y-o-y.

The volume of retail sales rose sharply in December. Consumers rushed to buy durable goods in response to the ruble’s weakening in an effort to stave of their loss of ruble purchasing power. In the fourth quarter of 2014, real disposable incomes of households fell 3.5 % y-o-y.

Change in domestic demand and industrial output, % y/y

Source: Rosstat