Russia’s industrial production growth accelerated to 7.1% year on year in October from 6.9% y/y in September, which meant output was up 5.0% y/y in 10M21, RosStat reported on November 25.
In seasonally adjusted terms, industrial production was up 0.8% m/m in October following 1.8% growth in September.
The acceleration in y/y growth was driven mainly by the mining and quarrying sector, which grew 10.9% y/y versus 9.0% in September, driven by an increase in the production of oil and gas (up 8.9% y/y), coal (9.1%) and other natural resources (7.8%), as well as an increase in associated services (up 30.1%), Sberbank CIB reports.
At the same time, growth slowed in manufacturing (to 4.5% y/y from 5.1%), the electricity, gas and heat sector (to 8.0% from 9.6%), and the water and waste management segment (to 6.3% from 11.7%).
Within the manufacturing sector, growth remained strong in categories including beverages (13.6% y/y), paper and paper products (9.4%), oil products (11.9%), drugs and medicine (29%), machinery and equipment (17.2%), and transport equipment excluding cars (18.7%).
Other segments registered a clear slowdown, including metals (output was flat y/y), metal products (up 2.7%), computers and electronics (down 12.6%), and cars (down 15.8%).
“The production of oil, gas and coal will likely continue to post solid growth in the months to come due to high external demand and the increase in oil production quotas under the OPEC+ deal. However, manufacturing growth could remain under pressure due to persisting supply bottlenecks and possible new COVID restrictions,” Sberbank said.