The Russian economy resumed its decline

The Russian economy resumed its decline


Photo: Oleg Yakovlev/RBC

The fall of the economy

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The Ministry of economic development recorded in September, the deterioration in industrial production and the resumption of the General decline in economic activity

The situation in the Russian industry in September 2016 has worsened, according to a published Monday, October 31, the monitoring of economic development. Calculated by the office of seasonally adjusted industrial production index after recorded in August growth (+0.3% against July) once again came in negative (-0,2%).

The main driver of the fall was the deterioration in the processing industries, where the decline (compared to August) amounted to just 0.4 percent in August, the sector had recorded growth of 0.5%. In annual terms, the decline in production at factories rose in September from 1.6% (in August was +0.1 percent).

In some sectors, the decline was much stronger. Thus, the volume of production of passenger cars in September fell at an annual rate of 3.6%, knitwear — by 4.9%, shoes — by 9.7%, pig iron — by 9.9%, steel pipes — by 12.8%.

At the same time, chemical production, according to the Ministry, continues to show strong growth. At the end of September, it increased 2% (year-on-year), for the first nine months was 4.6%. The amount of fertilizer in September increased by 6.1%, and synthetic rubbers — just 25%.

In mid-October, Rosstat reported that growth rates in Russian industry in September, peaked in January 2016.

The economic development Ministry report notes that a negative trend in September 2016, showed the index of GDP. In August, the Ministry reported that after excluding seasonal and calendar factors the GDP volume in comparison with the disastrous July rose 0.3%. New data show a renewed decline in annual terms, the GDP volume in September decreased by 0.7% and month-on-month (excluding seasonal and calendar factors) — by 0.2%.