According to Rosstat, industrial production growth dropped to 2.1% YoY from 3.4% YoY in July. This is significantly below the consensus forecasts of 3.1% (Bloomberg) and 2.9% YoY (Interfax), but in line with our expectations of 2.3% YoY.
Seasonally adjusted industrial production decreased 0.7% MoM. The detailed breakdown reveals that the growth in August was mainly driven, as usual, by manufacturing, which added 4.7% YoY (vs. 5.7% YoY in July) on the back of growth accelerating in trucks production, the strong performance of the poultry, milk and sunflower oil industries, and growth in the metals and construction materials sectors (which was still robust despite some deceleration). The growth in mining ticked down to 0.8% YoY (from 0.9% YoY), despite a softer decline in gas production (-2.8% YoY vs. -7.9%) and a spike in the coal industry (12.9% YoY vs. 5.6% YoY on average in 7mo12) during the reported period. The growth in utilities (electricity, water and gas distribution) kept moderating and decreased to 0.2% YoY (from 0.8% % YoY in July).