Industry in Russia

newsletter 06/09/2012

According to the Federal State Statistics Service data, Industrial production in January-July 2012 increased to 103.2% compared to the same period in 2011. In July of 2012 the industrial output was 3.4% above its year-earlier level. 

The total of goods and services produced during seven months of this year was 3.2% more than in the same period of the last year. An additional business day in July might have slightly advanced  industrial growth rates, but even after seasonal and calendar recalculation, the industrial output made up 0.9% more than in the previous month. 

The annual growth in manufacturing industries in July increased 5.7% against 3.4% in June, which was the most significant contribution to the total rates of growth. For instance, an annual production of crude sunflower oil for the last seven months jumped up to 93.9%. Considerable increase has indicated for production of fuel pumps (54.6%) and desktop computers (45.7%). But the production of passenger vehicles and trucks in July has fallen to 9.5% and 7.9% respectively. However, there is an annual rise in passenger vehicles production (17.5%) and truck production (2.2%). 

Production of electric energy, gas and water has grown 1.1% monthly (2.1% in June) and  0.8% annually. This industry is driven by electric energy production (1.4% annual growth) with most energy produced by nuclear plants (9.1% annual growth). 

In July, mining output advanced 0.9% (0.2% in June), with most gains in coal mining (5.9% annually and 6.4 monthly in June). Such increase is strongly related to the rapid growth in coal export, while domestic consumption remains stable with no evidence for future growth. Production of liquefied natural gas has grown to 4% annually and 25.4% monthly. However, natural gas extraction decreased to -3.6% to seven month of the last year and 7.9% to July, 2012. This decline should be correlated to relatively high output of the last year, especially because of the trends in export trade. It is worth mentioning that domestic consumption made up 94.7% from the last year period, when export rates were 85.2%. 

The following is a percentage distribution of growth by industry: manufacturing – 4.9%, energy, gas and water production and distribution – 0.9%, mining – 1.7%. 

There is an evidence of the economic growth slowdown in June, which is seen in industry stagnation and in decline in agriculture production. Seasonal changes affected demand and consumption in July, and even with stagnation in investing, production and international trade, there is a economic growth registered. However, it is not possible yet to calculate  the precise dynamic of economic trends of this year. The Federal State Statistics Service might change the Index after new data is obtained. 

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