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. Last Updated: 07/27/2016

Production Falls 15% in January

Industrial production fell 15 percent in January from the previous month, led by processing industries, after the country celebrated a 10-day New Year holiday.

Output increased 2.1 percent in January from the same month a year ago, not adjusting for work days, the State Statistics Service said in a statement Friday. It did not give work-adjusted figures. There were 15 business days in January, compared with 23 business days in December and 20 days in January 2004.

Russian factories were closed during the holiday that spanned New Year's and the Jan. 7 Russian Orthodox Christmas. That should not change the outlook for the economy to grow as much as 6.3 percent this year, said economists including Sergei Suverov, head of research at Gazprombank.

"The output declined in January from December because of the holidays," said Suverov. "In fact, when you take the holidays into account, there is no significant slowdown."

Output in processing industries fell 24 percent from December's level, the service said. Production of construction materials, such as bricks, thermoplastic sheets and roofing, as well as machinery production, led the decline.

Natural resources extraction declined 1.9 percent in January from the previous month, the service said. Much of extraction, such as oil and natural gas production, is a continuous production-cycle operation that cannot be stopped for holidays. Oil production fell 0.8 percent while gas output rose 1 percent.

In December, industrial output rose 2.5 percent from November and was 4.6 percent higher than the same month a year ago. Output increased 6.4 percent in January 2004 from the same month a year ago but declined 12.8 percent from the previous month.