MOSCOW, April 2 (Reuters) - Russia's rail freight will likely fall 22 percent in April year-on-year after shrinking by over a quarter in the first three months of 2009, Russian Railways' vice president was quoted as saying on Thursday.
Freight shipment by rail, a broad indicator of economic activity, have been hit as Russia enters its first recession in a decade, with companies slashing production in response to falling demand at home and abroad.
Job losses and salary cuts are also forcing consumers to tighten their belts. Russian Railways saw a 14 percent year-on-year drop in passenger volumes in the first quarter, Interfax quoted the company's vice president Boris Lapidus saying during a visit to the city of Tver.
However in freight, like in industrial output, there were some signs that the slowdown is gradually moderating.
Lapidus said shipments are expected to fall 22 percent this month after shrinking 23 percent in March, 26 percent in February and 33 percent in January.
Official data showed industrial output slowdown easing in February from January's record pace [ID:nLG557071], while the VTB Capital's Purchasing Managers' Index (PMI) rose to a five-month high in March despite remaining firmly in contraction territory [ID:nL1282098]. (Writing by Toni Vorobyova; Editing by Ron Askew)