Industry in Russia rose for the first time in 13 months

The index of industrial production in Russia by the end of February 2016 has increased compared to last month, last winter at 1%, follows from the materials of Rosstat. In Russia for the first time in more than a year decline of industrial production was replaced by its growth in recent times, the volume of production in industry in annual terms increased in January 2015 (+0.9%).

In the sphere of production and distribution of electricity, gas and water no change by the end of February on an annual basis has not occurred, although in January the sector saw growth of 2.5%. Previously, experts of the Institute “development Center” Higher school of Economics explained the January increase decrease in mean monthly temperatures.

“Since replaced by unusual cold January came unconventionally warm February, we can expect that the statistics for February show a sharp drop in the production of the infrastructure sector, which will pull down the entire index of industrial production”, — noted in the report “development Center” HSE.

Compared with January indicators of the sector have collapsed (-12,5%), but the index of all industrial output they could just pull them couldn’t. Prevented a sharp increase in the field of mining of minerals, the volumes of which grew by 5.8%. In particular, production of iron ore in annual terms increased by 5.2%, coal 6%, and oil and gas condensate — just 7.2%.

At manufacturing plants continued to decline, although the rate of decline (-1%) was the lowest since January 2015. The highest rates in February 2016, reduce the production of residual fuel oil (-23,1% yoy), bricks (-24,5%), concrete structures (-23%) and cars (-17,5%).

Previously, experts of the Higher school of Economics (HSE) for the first time since March 2015 recorded a decrease in the business confidence index (ICS), which, according to their findings, indicates a worsening business climate in industry. Compared to the January 2016 CPI in February it decreased by 1 percentage point (PPT), down to the level of -5%.

In February 2016, the HSE experts warned that January’s decline in output in the manufacturing sector. increases the chances of a General deepening of the economic recession in 2016. “Taken together, the current dynamics of macroeconomic indicators indicates that the spiral of recession in the Russian economy continues to twist”, — noted in the document.

In 2015 compared with year 2014, industrial production decreased by 3.4%. The volume of production of manufacturing enterprises fell by 5.4%.