Industrial production rises 8.7% y-o-y in July

Industrial output growth slowed to 8.7% y-o-y in July vs. 8.9% y-o-y in June, according to data published yesterday by the State Statistics Committee. Svetlana Rekrut: In 7M11, the fastest growing sectors were machinery +20.5% y-o-y, chemicals +23.6% y-o-y and metallurgy +11.4% y-o-y. Coke and food production dropped by 4.6% y-o-y and 3.2% y-o-y, respectively. We attribute the slowdown in coke and oil processing (-10.2% y-o-y in July vs. +21.7% y-o-y in June) to lower seasonal consumption by metallurgical producers. The chemical and machinery sector continued to benefit from a low base effect and solid demand from external markets.