Industrial production rises 9.6% y-o-y in August

Industrial output growth accelerated to 9.6 % y-o-y in August from 8.7% y-o-y in July, according to data published yesterday by the State Statistics Committee. Industrial production rose 2.2% m-o-m, just as it did in July. Svetlana Rekrut: In August, the fastest growing sectors were machinery (+22.1% y-o-y), chemicals (+21.4% y-o-y) and metallurgy (+18.7% y-o-y). Chemicals and metallurgy benefited from recovering external demand in 1H11. We attribute machinery growth to domestic consumption (i.e. car sales grew by 45.0% y-o-y in August according to Auto Consulting, see our news from September 8) and CIS exports. We expect industrial output to grow 8% y-o-y in 2011.