OREANDA-NEWS. Tentative data suggest that the economy grew in October, albeit with substantially mixed economic performance across sectors, according to ‘Talking Trends No. 11’, a bulletin issued by the Bank of Russia’s Research and Forecasting Department.

There was an improvement in short-term business indicators in October, which suggests economic growth is poised to emerge in the fourth quarter, including on the back of recovering investment activity. The month saw a rise in both real wages and consumer demand, as reflected by Q3 retail sales and the dropping savings ratio. However, as the authors note, the structural constraints across a number of key industries are there to say, preventing the economy to settle down on a sustainable path out of stagnation.

The current inflation dynamics are within the bounds of the Bank of Russia’s baseline scenario for 2016 (5.5%-6.0%), with the actual oil prices being somewhat higher and a favourable impact from other temporary factors. Barring new price shocks in the months ahead, year-end price growth is set to be close to the lower bound, the report says.

The findings and recommendations expressed in the bulletin do not necessarily reflect the official position of the Bank of Russia.