Russian Economy Ministry expects production output slowdown in Q4 2019

TASS Russian News Agency | Oct 16, 2019 at 4:27 PM

/Update/

MOSCOW, October 16. /TASS/. The Russian Ministry of Economic Development forecasts deceleration of industrial output growth rates in Russia to 1.2-1.5% in annual terms in the fourth quarter of this year, according to the ministerial report released on Wednesday.

Industrial production is steadily growing for the fourth month in a row with the rate of about 3%, the report says.

"At the same time, considering poor dynamics of PMI indicators and remaining effect of OPEC+ oil production capping agreement, industrial output growth rates are expected to decline in the fourth quarter of this year to 1.2-1.5% on an annualized basis," the report says.

Acceleration of industrial production in September on a monthly basis was supported by positive dynamics of processing sectors. The processing industry showed growth in the first instance on account of the food sector, manufacturing of miscellaneous non-metal mineral produce (including construction materials) and machine-building. The chemical industry also supported dynamics, having increased by 6.4% in annual terms.

The decline in mineral resources production in September to 2.5% annually against 3.1% in August was primarily driven by trends in the oil and gas sector. Crude oil (including condensate) and natural gas production declined respectively by 0.1% and 4.1% annually. Liquefied natural production decelerated and metal ore production dynamics lowered the pace.