The increase of the industrial production in December reached a year maximum

The industrial production in Russia increased by 3,9% in December 2014 comparing with the corresponding period of 2013. The growth was recognized after the drop of this indicator in November by 0,4% and the growth by 2,9% following the October results.

The growth of the industrial production in December in comparison with November amounted to 8,1%. By contrast in December 2013 this indicator amounted to 3,6%. At the same time the results of the last December became a total surprise for the experts. Thus, the analysts forecasted the growth following the results of December for less than 1,4%.

industrial production in Russia

Dynamics of industrial production index

Some experts explain such impressive results of the industrial production in December by a calendar factor (in December 2014 there was one more working day in comparison with December 2013) and also by a low value of this indicator in December 2013. Besides, the growth of the industrial production that year in comparison with 2012 amounted to only 0,4% after 2,8% following the results of November.
In addition, the industrial dynamics in the sectors with a long investment cycle should be noted among factors that influenced the experts’ forecast precision. These sectors are particularly exposed to different fluctuations. Thus, following the results of the last December the production of gas turbines increased threefold comparing with the corresponding period of 2013. However, in the end of year the results appeared to be humbler and the growth amounted to 14,5%.
Embargo and devaluation of ruble influenced the December data as well. Therefore the active growth was recognized in the processing industry sectors where the import substitution takes place. For instance, production of meat (excluding poultry meat) increased by 20,1% (by 13,3% per year) and cheese by 32,7% (by 14,1% per year).
As a whole, the growth in the processing production in the last December amounted to 4% and to 2,1% per year. The production in the sector of mineral resources extraction increased by 3% in December and by 1,4% per year. In the sector of production and distribution of power energy, gas and water the growth by 3,4% was recognized in December and the drop by 0,1% per year.
Free play on Forex will become a thing of the past

The President of the Russian Federation Vladimir Putin has signed an amendment to the Securities Market law. Modifications will concern the definition and regulation of Forex-companies activity. The most part of adjustments will come into force on the 1st October 2015.

Now under the activities of the Forex dealer will be recognized operations on conclusion of contracts in one's own name and at one's own expense with individuals, who are not sole entrepreneurs, and not on organized auctions. The Forex dealer has no right to combine its activity with another professional activity on securities market and other operations.

The amount of Forex dealer equity should be not less than 100 mln RUB, besides the money liabilities under contracts of Forex dealer with individual, who is not a sole entrepreneur, are executed in a non-cash form.

Earlier The Central Bank noted that banks will have to stop providing forex-services to citizens: according to the new act, the combining of bank activity and Forex will be banned.

The initiative is commendable as the absence of accurate auction rules on Forex, led to the fact that any citizen without special training could participate in the gamble on currency exchange. Many companies without appropriate financial support and professional experience were set, organizing such trading sessions.