Ukraine industrial output grows 3.4% in August

Ukraine’s industrial output returned to growth in August, rising 3.4% yoy after a 0.2% yoy decline in the prior month, according to state statistics released on Sept. 21. August’s industrial improvement was driven by chemicals (+12.4% yoy vs. +7.1% yoy in July), metals (+5.0% yoy vs. +4.3% yoy) and machinery (+1.8% yoy vs. -11.5% yoy). Meanwhile, utilities slowed to +4.9% yoy (+6.2% yoy in July) and mining deepened its decline to -1.7% yoy from -0.4% yoy in the prior month. 

In 8M16, industrial output increased 2.0% yoy.

Alexander Paraschiy: Our concerns on weakening industry have disappeared after these August statistics. The dramatic July drop in machinery production, which served as a drag on industry, looks to have been temporary and the sector is returning to growth.  Relatively good metal prices underpinned reviving metal production. Though industry has been considerably volatile in recent months, the general tendency remains in line with our initial projection for 2016 of 2.0% yoy, which we are sticking to.