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. Last Updated: 07/27/2016

Production Increases Amid Crisis

Industrial production grew faster in September than economists forecast, driven by products such as turbines and pipes.

Output increased an annual 6.3 percent, compared with 4.7 percent in August, the State Statistics Service said Wednesday. The median forecast of 12 economists was 5 percent. Industrial production expanded 1.4 percent in a month, the statistics service said.

"This is very good growth," said Anton Struchenevsky, an economist at Troika Dialog. "I was much more pessimistic in my expectations. The financial situation was certainly not easier this September."

Manufacturing output expanded an annual 8.3 percent, the statistics service said, even as lenders faced what Central Bank Chairman Sergei Ignatyev called "an acute liquidity shortage" in September.

The government pledged more than $200 billion in loans for banks and companies, tax cuts, and stock market support to stem the financial crisis.

The September figures "aren't bad given the tough environment," said Nikolai Kashcheyev, an economist at MDM Bank in Moscow. "The main risks for parts of the real sector reside ahead."

Pipes and pipeline parts production expanded an annual 26.1 percent and hydraulic-turbine output increased an annual 97.3 percent in September. Mining and quarrying increased an annual 3.2 percent.