The growth in construction shed to 18.8 percent in September, according to Russia’s Statistics Service.
Photo: Nikolay Cyiganov
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The Crisis Doesn’t Rush to Consumers
In September, the rates of investment growth shed to 16.1 percent and construction had just 18.8 percent, according to Russia’s Statistics Service. The analysts blame slowdown on seasonal factor and say that it’s too early to speak about the effect of liquidity problem on economy. But the decline in retail growth confirms the beginning of negative effect caused by the dragging market of consumer credits.
The pace of industry shed to 3 percent in September. On Friday, Russia’s Statistics Service reported the further slowdown in investment rates. The growth in fixed capital investments lowered to 16.1 percent in September, which is this year’s minimum. The indicator is going down for the third month running. The growth was 27.2 percent in June, 24.7 percent in July and 18.8 percent in August. Regardless, the rates are still much higher than a year ago. The investments stepped up 21.2 percent from January to September of 2007 vs. 11.8 percent a year earlier.
Construction suffers from similar decline. There, the annual growth was 25.5 percent in the first half of this year, while no more than 19.8 percent was posted in August and September lost another 1 percent. “Construction is still the engine of industrial growth. The branch covers 50 percent of all fixed capital investments,” said Yaroslav Lisovolik from Deutsche Bank.
So far, most of economists are too cautious to link some slowdown of industry, construction and investments to liquidity problems both in Russia and worldwide. But Anton Struchenevsky from Troika Dialog is sure that the loss of speed in September was directly caused by the crisis on the U.S. sub-prime market.
www.kommersant.com
All the Article in Russian as of Oct. 22, 2007
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