Russia: Industrial output grows at the weakest pace in almost two years in January
Latest reading: Industrial production started the year on a weaker footing, growing 2.2% year on year in January (December: +8.2% yoy). The figure marked the worst reading since March 2023. Looking at the details of the release, energy supply fell at the sharpest clip in at least a decade, dented by the expiration of a five-year gas transit deal between Russia and Ukraine on 1 January. Moreover, mining and quarrying swung into contraction, and manufacturing output growth halved. More positively, water supply gained traction.
As a result, annual average industrial production growth cooled to 4.4% in January (December: +4.6%), signaling a deteriorating trend in the industrial sector.
On a monthly basis, industrial production shrunk 3.2% in seasonally adjusted terms in January, swinging from December’s 2.3% expansion and marking the worst result since April 2020.