Ukraine's Industry Revival: May Industrial Output Up 10% yoy.

In May Ukraine’s industrial outputgrew by 10% yoy. In January-May the cumulative growth was 2.4% yoy. Concorde Capital: After four months of miserable growth rates (0.4% during 4M06), the 10% surge in industry output in May is a something of an economic miracle. The main reason behind it, is the unexpected growth posted by Ukraine’s metallurgy (+12.4% yoy vs. decline of 1.6% in 4M06) supported by price growth ~25% on world steel markets since the start 2006. Additionally, the machine-building and food industries continued to their strong growth rates in May: up 17% yoy and 9.8% respectively. Despite May’s break-through in industry, we, continue to maintain our industrial output growth forecast at 4% for 2006.