Russian GDP growth accelerates to 4.2% in July, 3.8% in 7M - Econ Ministry
MOSCOW. Aug 23 (Interfax) - Russian GDP growth accelerated to 4.2% in July, from 3.9% in June, the Russian Economic Development Ministry said in an economic review.
The economy grew 3.8% year-on-year in January-July.
Seasonally adjusted GDP growth also accelerated, to an estimated 0.4% in July from 0.2% in June.
Construction and retail trade drove the GDP growth, which industrial output, including manufacturing and mineral extraction, slackened, the ministry said.
Adjusted for seasonal and calendar factors, industrial output generally contracted 0.2% in July after expanding in March-June, the ministry said.
There was a dip of 0.1% in mineral extraction for a second month. Output continued to grow in utilities (0.4% in July), but dipped 0.4% in July after March-June growth manufacturing.
In the latter, the largest adjusted gains were posted in such sectors as chemicals, the production of transport vehicles and equipment, of other non-metallic mineral products, of leather, leather goods and footwear. Contraction was observed in the production of machinery and equipment, coke and oil products, rubber and plastic products, in the processing of timer, and in the production of wood products.
Investment in fixed capital (seasonally adjusted), the ministry reported was down 0.9% in July after 10.1% growth in Q2.
The pace of construction quickened in May-July, work volume increasing 7.2% (adjusted) in July, the ministry said.
On the labor market, unemployment began again to rise amid a reduction in employer needs for worker, as well as increased wage arrears. In relation to the working population, unemployment increased from 6.1% in June to 6.5% in July. The seasonally adjusted unemployment level increased from 6.5% in June to 6.9% in July.
Real wages continued to trend up - 0.6% (adjusted) from June through July.
"Despite a halt in the growth of disposable income, the continuation of a reduction trend in private savings provided stable growth in consumer spending," the report says. In year-on-year terms, the increase in credits to private borrowers in July was up to 26.5% from 24% in June. Seasonally adjusted, retail trade turnover was up 0.6% in July.
The Economic Development Ministry's current official economic growth forecast for this year is 4.2%. A consensus forecast compiled by Interfax from a survey of economists also produced a 4.2% figure for GDP growth in 2011.
