The decline of industry in October slowed sharply

Photo: Vladimir Smirnov/TASS

The monthly decline in industrial production in October was replaced by an increase, in annual terms, the decline has slowed

The situation in Russian industry has improved significantly since the beginning of the cold season, it follows from the materials of Rosstat. In October, the monthly decline in industrial production (excluding seasonal and calendar factors) was replaced by growth from minus 0.3% in September to plus 0.3%. In annual terms, the decline, the pace of which in September reached their highest level since the beginning of the year (-0.8%), in October slowed down significantly (to minus 0.2%).

In January—October, 2016 the index of industrial production increased by 0.3%.

The overall improvement is largely due to a sharp increase in production and distribution of electricity, gas and water. Compared to September, this index rose by more than a quarter (plus 27.5%). A noticeable increase was also recorded in the mining industry: production volumes increased month-on-month by 2.7% (in September was recorded a decline to minus 0.2%). Thus were the fastest growing in October, natural gas production (plus 21.3 percent compared to September 2016) and oil (plus 3.7 percent).

In the sphere of manufacturing by the end of October the situation has also improved. On a monthly basis, production growth in this segment amounted to 4.2% (in September was plus 2.4 percent) in annual continued decline, but the pace slowed from minus 1.6% in September to minus 0.8 percent.

Most rapidly grew in October, the production of sunflower oil (plus 72.5% in month-on-month), sugar (plus 23.7 per cent) and vodka (plus 14.2 per cent). The fastest reduction in the production of tractors (minus 47,4%), millet (minus 24.8 percent) and buses (minus 12.5 percent).

Previously, experts of the company Markit said the purchasing managers ‘ index (PMI) in the manufacturing sector of Russia continues to grow for the third consecutive month and at the end of October 2016, reached the level of 52.4 points.

In turn, the market research Center of the Institute for statistical studies and Economics of knowledge, HSE said that they expect the business confidence index (ISP) in the industry of Russia for the first six months showed a positive trend. After six months of stay at around minus 5% of the IPU in October 2016 reached minus 4%.

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