Rosstat data for January, 2017: Russians’ incomes are growing, but the population is not inclined to spend

On 22 February 2017 the EDSG experts commented to news agency Finam statistics published by Rosstat (Russian Statistics Agency) for January, 2017. In particular, the attention was drawn to a marked increase in real disposable income (8.1% YoY) for the first time after three years of decline. The decline in retail trade turnover is still down (by 2.3% YoY), but the decline slowed down compared to last year. Industrial production in January 2017 increased by 2.3% YoY.

The main factor in the growth of real disposable income of Russians in January 2017, according EDSG experts, is a one-time payment of pensions. Nevertheless, one can not deny the contribution of the resulting index and other fundamental factors related to the economic recovery fixed in the second half of 2016.

On the growth of economic activity points to industry insights and general index of the PMI, which at the end of 2016 caught up with the value of 2008. In the beginning of the year, growth was recorded in the services sector. Thus, the rail and sea transportation services, as well as the consumption of electricity has been incressed. Growth in both the industrial sector and the service sector contributed to the increasing demand, which in turn, stimulated the growth of employment and real disposable income.

Despite the growth in real income was identified, Russian population changed its consumption basket, and became increasingly inclined to save the money because of the economic crisis started in 2014.