On the Dynamics of the Russian Industry in January-February 2014

In January 2014, the Rosstat published the updated data on the dynamics of industrial development in the 2010-2013 period which situation makes it necessary to adjust the earlier made conclusions on the nature and rate at which consequences of the crisis are being overcome.

In accordance with the updated data, in the 2011-2013 period the indices of growth rates in manufacturing rose with the dynamics of production of primary products becoming weaker. In 2013, the results of manufacturing rose to 100.5%, while the index of production and distribution of power, gas and water decreased to 97.5% against the previous year.

On the basis of the updated quarterly and monthly dynamics, the major drop in industrial production in 2013 took place in the 1st quarter, while economic revival evidence started to emerge from the 2nd quarter as a result of recovery of growth in manufacturing. In the 4th quarter of 2013 output growth in manufacturing was twice as little than the respective index of the previous year and amounted to 2.4%.
In January-February 2014 as compared to January-February 2013, the index of industrial production amounted to 100,9%, while in February 2014 as compared to February 2013 and January 2014, to 102.1% and 101.6%, respectively.

Fairly high growth in industrial production in February 2014 can be partially explained by a low 2013 base, as well. In February 2013, the index of industry amounted to 96.9% year on year, including 97.8% in manufacturing.

In February 2014, manufacturing accounted for a larger part of growth; growth in manufacturing rose by 3.4% year on year after stabilization in January (a 1.8% growth in January-February against the respective period of the previous year).

In February, the output volume of production of primary products rose by 0.8% after a 0.9% growth in January (growth of 0.9% in January-February). A 0.3% drop was registered only in production and distribution of power, gas and water after a decrease of 3.9% in January (a 2.2% decrease in January-February).

Olga Izryadnova, Head of the Structural Policy Department