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Russia Industry Surprises With Small Drop as Economy Adapts

  • Industrial production down 0.5% in July, less that forecast
  • Russia has adapted to sanctions hit but more pain seen to come
Mixed denomination Russian ruble banknotes.

Mixed denomination Russian ruble banknotes.

Photographer: Andrey Rudakov/Bloomberg
Updated on

Russia’s industrial sector recorded the smallest contraction in four months in the latest sign the economy is adapting to the sweeping sanctions imposed by the US and its allies for the Kremlin’s invasion of Ukraine.

Industrial production fell 0.5% in July, less of a drop than the 2.3% expected by analysts in a Bloomberg survey and the best performance since the first months of the war. On a seasonally adjusted basis, output was up from the previous month for the first time this year, according to data released by the Federal Statistics Service.