Make Kitco Your Homepage

UPDATE 1-Russia's January industrial output up 2.9 pct yr/yr

Kitco News

* Output down in Nov-Dec, hitting 2017 GDP

* Jan industrial output up 2.9 pct, yr/yr, beating forecasts

* Growth may be short-lived, analyst says


(Adds details, analysts, background)

By Zlata Garasyuta

MOSCOW, Feb 15 (Reuters) - Russia's industrial output rose 2.9 percent in January compared with January a year ago, recovering after two months in red, the state statistics service said on Thursday.

Analysts polled by Reuters had expected a 0.3 percent decrease in output year-on-year. The surprise increase came after declines in the two previous months, of 1.5 percent in December and 3.6 percent in November .

The economy ministry said this week that lower spending on defence affected industrial output late last year, as it kept economic growth for the year at 1.5 percent, less than previously expected .

The rise in the industrial output last month was supported by a 1.1 percent increase in the extraction of raw materials, mostly oil and gas, and by a 4.7 percent gain in manufacturing, the data showed.

Daria Isakova, senior economist at Otkritie Capital, said that the rise in the output was short-lived amid ongoing large infrastructure projects such as the Power of Siberia gas pipeline to China and preparations for the 2018 World Cup.

Rosstat provided the following headline data and sector breakdown: Headline industry output Jan 18 Dec 17 Jan 17

yr/yr pct change +2.9 -1.5 +2.3

mth/mth pct change -20.4 +8.2 -23.8 Extraction of raw materials

yr/yr pct change +1.1 -1.0 +3.3

mth/mth pct change -2.2 +3.7 -3.8 Manufacturing

yr/yr pct change +4.7 -2.0 +2.0

mth/mth pct change -30.6 +8.9 -35.2 Production and distribution of electricity, gas

yr/yr pct change -2.2 -5.5 +0.8

mth/mth pct change +3.4 +11.8 -0.1 Distribution of water, sewage

yr/yr pct change -4.6 -4.2 +1.6

mth/mth pct change -14.1 +7.4 -17.3

NOTE - For key Russian indicators click here .


(Reporting by Maria Kiselyova and Zlata Garasyuta, writing by Katya Golubkova,; editing by Larry King)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.