January Industrial Output Down 2.9% yoy.

According to the State Statistic Committee, Ukraine’s industrial output declined 2.9% yoy in contrast to January last year when it increased 8.4%. Industry growth in Ukraine was 3.1% yoy in 2005. Concorde Capital: The two segments that stunted industrial growth in January were the chemical (down 7.7% yoy) and metallurgical (down 4.2%) sectors. The seasonal fall in prices in 4Q05 for chemicals (down ~ 15%) and gas price increases had a negative impact on chemical sector. The gas issue was also behind the fall in metallurgy. At the same time growth was registered in pulp & paper production (up 13.7% yoy), utilities (up 13.2%), food (up 6.6%) and machine-building (up 3.7%). We estimate industrial output growth for this year will be 5.5% yoy.