Ukraine industry slows to 0.2% yoy growth in May

Ukraine’s industrial output slowed to 0.2% yoy in May from 3.5% yoy in the prior month, the State Statistics Service reported on June 22. For 5M16, industry increased 3.1% yoy. Metals output slowed to 7.4% yoy growth from 15.5% yoy in the prior month. Dropping output occurred in mining (-3.5% yoy from 3.0% yoy growth in April) and machinery (-0.3% yoy from 0.4% yoy growth in April). Chemical production improved to 8.4% yoy growth from 0.9% yoy in the prior month, as did utilities, which fell -1.9% yoy from -5.0% yoy in April.  Industrial growth adjusted for calendar days was 0.1% yoy compared to 3.7% yoy in April.

Industrial output in the Luhansk region jumped 83.0% yoy in May and fell in Donetsk 1.2% yoy.

Alexander Paraschiy: The IMF metal price index decreased 3.4% m/m in May so it was quite predictable that industrial performance would also slow down. Still the decline was much stronger than we expected. Mining fell on the back of declines in extraction of oil (-11.5% yoy) and coal (-11.2% yoy). Metal production worsened owing to falling output of semi-products (-12.8% yoy vs. +13.9% yoy a month ago) while other metal items maintained growth or even strengthened. In particular, ferrous metals output strengthened to 20.2% yoy growth from 16.5% yoy in April.