Sales of non-food products up in August
Key economic indicators in August 2018 moved overall in line with the Bank of Russia forecast for annual GDP growth in the third quarter
The marked growth in sales of non-food purchases occurred on the back of rising household inflation expectations, triggered by the weaker ruble and the forthcoming VAT increase. An inFOM survey suggests respondents consider the current period of time as the most suitable for large purchases.
Individual production and investment indicators continued to put in a mixed performance. Overall industrial output was up 2.7%. Despite growing outputs of investment goods, investment activity remained weak. That said, company surveys point to an improving business sentiment, which is set to underpin production and investment activity in the future.
As of the end of 2018, GDP remains on track to rise