The dynamics of the industry in February 2013

The tendency towards a steady slowdown in industrial production continued throughout 2012. In December 2012, the rate of industrial production amounted to 101.4% of the previous year.

The beginning of 2013 showed, for the first time in three years, a fall in industrial production compared to the previous period. Industrial production in February 2013 amounted to 97.9% as compared to February 2012, including in the mining industry - 97.8% and in manufacturing - 99.9%. The dynamics of the industry is significantly affected by factors of decline in domestic demand, formed during the previous year. 

A drop in manufacturing activity is mainly due to the low dynamics of demand for investment goods and products of contingent production with regards to construction and building materials, of the metallurgical, chemical and wood processing industries. The gradual weakening of the growth rates of the production of vehicles was followed by an instability in the dynamics and production of machinery and equipment, and electrical, optical and electronic equipment. Production cuts in the manufacture of machinery and equipment over the previous year were recorded in April 2012 and in January and February 2013, these processes have intensified. 
Considering the current dynamics in the first two months of this year, the achievement of the projected growth of the industry in 2013 at 103.6% looks unlikely.

O.I. Izryadnova – Head of the Structural Policy Department