Russia's retail sales growth slumps unexpectedly on incomes
Russian retail sales growth unexpectedly slumped in October after unemployment increased for the first time since January and slower-than-estimated gains in wages and incomes curbed consumer purchasing power.
Receipts at merchants rose 3.8 percent from a year earlier, the slowest pace since February 2010, after a 4.4 percent increase in September, the Federal Statistics Service in Moscow said in an e-mailed statement Tuesday. The median forecast of 16 economists surveyed by Bloomberg was for 4.5 percent. The jobless rate rose to 5.3 percent from 5.2 percent.
Faltering domestic demand poses risks to the world's largest energy exporter, which has relied on household confidence to insulate the economy from Europe's debt crisis and slowing growth in China. Smaller gains in consumption are also hurting companies such as X5 Retail Group NV, Russia's largest food retailer by sales, which today reported third-quarter profit that missed analyst estimates.
The economic figures "can be linked to slower growth in incomes, wages and a relatively high level of the inflation rate," Alexander Morozov, chief economist for Russia at HSBC Holdings Plc in Moscow, said by phone.
Russian equities fell, heading for the biggest drop in a week, with the Micex Index losing 0.3 percent to 1,393.99 by 5:47 p.m. in Moscow. The ruble is the top performer among more than 20 emerging-market currencies tracked by Bloomberg today, gaining 0.5 percent against the dollar.
"The Russian consumer's financial position deteriorated further in October," Johannesburg-based Tradition Analytics said in an e-mailed research note. "It is evident that rather prominent inflationary pressures are weighing on the consumptive sector as inflation eats into the disposable income of consumers."
The pace of price growth has surged past the central bank's target of 5 percent to 6 percent this year, forcing policy makers to raise interest rates in September. The inflation rate unexpectedly fell to 6.5 percent last month from a year earlier, compared with 6.6 percent in September.
Real average wages increased 5.2 percent in October from a year earlier, missing the median estimate of 6.1 percent, the service said. Disposable incomes advanced 2.4 percent, below economists' forecast for 4 percent growth.
Fixed-capital investment unexpectedly jumped 4.9 percent from a year earlier and surged 14.4 percent on a monthly basis. Economists forecast a 1 percent decline from 2011.
"The acceleration of investment is seasonal and relates to the fact that toward the end of the year investment programs are implemented more actively," Dmitry Kharlampiev, director for macroeconomic research at OAO Petrocommerce Bank in St. Petersburg, said by e-mail.
- 2 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 3 University student in court for allegedly covering housemates' food in window cleaner and spit
- 4 Ryan Gosling posts tribute to 'Ryan Gosling Won't Eat His Cereal' creator Ryan McHenry
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
£13676.46 - £16411.61 per annum + OTE: SThree: SThree Trainee Recruitment Cons...
£18000 - £22000 per annum + training: Ashdown Group: Business and Marketing Gr...
£20000 - £25000 per annum + Commission: SThree: Are you great at building rela...
£20000 - £22000 per annum + excellent benefits: Ashdown Group: Application Sup...