Russian Industry Growth Quickens First Time in Four Months

Russia’s industrial-production growth accelerated for the first time in four months in November as an improvement in foreign sales boosted manufacturing in the world’s largest energy exporter.

Output rose 1.9 percent from a year earlier, compared with 1.8 percent in October, the Federal Statistics Service said today in an e-mailed statement. That matches the median estimate of 15 economists in a Bloomberg survey. Industry grew 0.6 percent from the previous month, adjusted for seasonality and working days.

Manufacturing is fueling industry “as domestic demand helps overcome weak global sentiment,” Vladimir Miklashevsky, an economist at Danske Bank A/S (DANSKE) in Helsinki, said by e-mail. “To grow faster, industrial output needs additional drivers -- for example, large and continuous public investments.”

Russia, the largest emerging economy to raise borrowing costs in 2012, has managed to keep economic output near potential, helped by business sentiment, lending growth and low unemployment, the central bank said Dec. 10. Still, the Economy Ministry cut its forecast for 2012 industrial-output growth last week to 3.2 percent from 3.6 percent, citing a worsening external outlook.

Russia’s benchmark Micex Index (INDEXCF) has risen 4.5 percent this year, while the ruble has gained 3.9 percent against the dollar.

Manufacturing expanded for a 14th month in November, marking the strongest quarterly improvement since the first three months of 2011 after new export orders increased, HSBC Holdings Plc said Dec. 3.

Still, gross domestic product advanced 2.9 percent from a year earlier in the third quarter, the slowest pace since it began recovering at the start of 2010, as agricultural output and construction volumes shrank.

Electricity and gas production fell 2.6 percent from a year earlier in November, while manufacturing grew 4 percent and output at mines increased 0.3 percent, today’s data showed.

To contact the reporter on this story: Ott Ummelas in Tallinn at

To contact the editor responsible for this story: Balazs Penz at

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