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. Last Updated: 07/27/2016

Industrial Output Declines 17% in May

Russian industrial production declined at a record pace in May, the State Statistics Service said Tuesday, as the government's 3 trillion ruble ($96 billion) stimulus package failed to boost orders during the country's worst economic crisis in a decade.

Output slid an annual 17.1 percent, the seventh consecutive decrease, compared with a drop of 16.9 percent in April. That was the biggest contraction since the service moved to a new methodology in 2003.

The economy shrank an annual 9.8 percent in the first quarter, the most in 15 years, as manufacturing and construction slumped at a record pace on the credit squeeze and waning demand. National output may fall as much as 8 percent this year, Economic Development Minister Elvira Nabiullina said, after 10 years of expansion averaging almost 7 percent annually.

Manufacturing tumbled an annual 23.7 percent in May, compared with a drop of 25.1 percent in April. Mining and quarrying contracted an annual 3.4 percent. Production of trucks fell 71.8 percent, while car output tumbled an annual 63.9 percent. Sales of cars and light commercial vehicles plunged the most on record in May, sliding 58 percent to 119,376 units, according to the Association of European Businesses.