Industrial production rises 8.9% y-o-y in June

Industrial output grew by 8.9% y-o-y and 8.7% YTD in June, while in m-o-m comparison terms it lost 0.4% (vs. +0.9% m-o-m in May), according to data published yesterday by the State Statistics Committee.  In 1H11, the fastest growing sectors were machinery +21.2% y-o-y, chemicals +18.3% y-o-y and metallurgy +10.2% y-o-y. Svetlana Rekrut: We attribute machinery sector growth to rapid automobile and freight railcars market expansion with YTD output increasing 66.5% y-o-y and 42.9% y-o-y, respectively. Meanwhile, chemical production growth stemmed from the global recovery on fertilizer markets and a low base effect from previous years.