By Olga Razumovskaya
MOSCOW--Russia's economy continued to lose ground in October with gross domestic product down 0.7% on an annual basis as the key drivers of consumer demand and investment activity deteriorated further, data showed Friday.
After growing by 7% annually on average in the early years of 2000, Russia's GDP shrank by 3.7% in 2015 and has continued to contract because of low oil prices and Western sanctions.
Economic recovery in annual terms is expected to start soon but the consensus is that lower consumer demand and falling capital investment are taking their toll.
The Federal Statistics Service said capital investment fell 2.3% on the year in October. And retail sales, a gauge of consumer demand, dropped by 4.4%. On the month, retail sales rose 0.7%.
Real disposable household incomes fell 5.9% year-over-year in October.
The service also said Monday that manufacturing output dropped by 0.2% in October compared with a year earlier.
Write to Olga Razumovskaya at firstname.lastname@example.org
(END) Dow Jones Newswires
November 18, 2016 08:14 ET (13:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.