Bloomberg News

Russian Industrial Output Rises 3.9%, Faster Than Forecast

December 15, 2011

(Updates with comments from economists in fourth and last paragraphs.)

Dec. 15 (Bloomberg) -- Russian industrial-production growth accelerated last month, beating economist forecasts as electricity generation increased.

Output rose 3.9 percent in November compared with a year earlier after a 3.6 percent increase a month ago, the Federal Statistics Service in Moscow said today in an e-mailed statement. The median forecast in a Bloomberg survey of 17 economists was for growth of 3.6 percent.

The increase suggests Russia’s economy is accelerating even as Europe’s debt crisis and slower growth in China threaten to damp demand for the country’s exports. Growth may be as much as 4.5 percent this year, up from 4 percent last year, Deputy Economy Minister Andrei Klepach said this week.

The results show a “stabilization or slight moderation of output growth in Russian industry,” Alexander Morozov, chief economist for Russia and the Commonwealth of Independent States at HSBC Holdings Plc in Moscow, said in an e-mailed note.

The Micex Index of 30 stocks rose 1.5 percent to 1,393.61. The ruble rose against the dollar for the first time in 11 days, strengthening to 31.79 at the close in Moscow.

Manufacturing grew 4.9 percent in November from the same period last year, while utilities advanced 3.2 percent, the statistics service said. Output at mines rose 1.3 percent.

“Russia’s economy is working at the limit of its production capacity,” Anna Bogdyukevich, an economist at OAO Gazprombank in Moscow, said by e-mail. “Given the low investment growth, which is restrained by uncertainty over future demand, growth rates for industrial output will slow in the coming months.”

--With assistance from Zoya Shilova in Moscow. Editors: Andrew Langley, Paul Abelsky

To contact the reporter on this story: Scott Rose in Moscow at

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

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