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Real Sector of the Economy: Factors and Trends in July 2013

Russia’s economy was characterized by lessening of internal and external demand within the first five months in 2013. A drop in industrial output which in May 2013 reached 1.4% against May 2012 had a substantial effect on the domestic market in the current year. Stagnation in the investment sector further lowered production of capital goods and construction materials. The manufacturing output index stood at 95.6% in May 2013 on a year-on-year basis amid severe recession in the machine building industry. Growth rates in retail sales turnover slowed down to 102.9% on a year-on-year basis in response to a fall of 1.3% against May 2012 in real household disposable income. The number of the unemployed in May 2013 remained less than in May 2012.