Russia Industrial Output Expands Nov 19,2014…….Surprised Chicken Little?

Posted: November 19, 2014 in Econ 101, Sanctions on Russia Meaningless

SOURCE: http://www.nasdaq.com/article/russia-industrial-output-expands-20141119-00379

SEE ALSO:  U.S. Trade With Russia Rises 7% As Well As Imports Up 23% – Putin

SEE ALSO:  U.S. Business in Russia Willing to Weather Sanctions


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Russia Industrial Output Expands
By Dow Jones Business News, November 19, 2014

MOSCOW–Russia’s industrial output growth picked up further in October, data from the federal statistics service showed Wednesday.

 The data showed industrial production grew 2.9% on the year in October after expanding by 2.8% in September. In monthly terms, industrial output rose by 5.1% in October after growing 2.7% in the preceding month.

The headline figure was boosted by the utilities sector which staged a 29% growth in monthly terms in October, the month when Russia boosts production of heat and electricity. On the year the utility sector grew by 2.8%.

Russia’s manufacturing sector also showed sound growth of 3.6% on the year and 3.3% on the month. For the second month Russia’s manufacturing benefited from Moscow’s decision to ban food imports from states that sanctioned Russia. While the ban imposed in August may provide temporary support for manufacturing, it also fuels inflation, which is on track to reach a four-year high.

Data from the Federal Statistics Service Wednesday also showed that consumer prices grew by 0.3% in the week to Nov 17, which brings the year-to-date inflation to 7.9%. This is above inflation of 5.9% seen in the same period a year earlier and the central bank’s initial inflation ceiling for this year of 6.5%.

Finance Minister Anton Siluanov said earlier this week that annual inflation may reach double digit reading as soon as the beginning of 2015. If that’s the case, the central bank is likely to tighten its monetary policy again after hiking rates four times this year.

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