Page 18 - UKRRptJuly18

Growth in machinery accelerated to 7.0% y/y (from 5.2% y/y in April), while chemicals surged 37.4% y/y (from 31.1% y/y in April).
The output in metallurgy dropped 1.2% y/y (after a 0.3% y/y growth in April). Oil and gas production dropped 1.6% y/y, while iron ore extraction declined 3.0% y/y. The growth rate of utilities - 8.6% y/y - remained the same as in the previous month.
The food industry picked up 0.5% y/y after a 4.1% y/y decline in April.
Seasonally adjusted output increased 2.2% month-on-month in May. In January-May, industrial output increased 2.6% y/y, the same rate as in January-April.
"Ukrainian industry is failing to maintain continuing improvement as gains in one sector are often blurred by deterioration in another one," Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital wrote in a note on June 25. "So far, industrial performance is far short of our 2018 growth forecast of 4.6% y/y."
Concorde's expectations of higher food production in the second half of 2018, which could push the overall industry result higher, "are more vague now", she added. "Dry weather this month could dash our hopes for a strong agricultural result in 2018," Akhtyrko wrote.
Industrial production in May 2018 from April 2018 increased by 3.1% and by 0.6% if the seasonal factor is taken into account.
In January-May 2018, industrial production growth was 2.6% from the same period of last year. In the supply of electricity, gas and steam it grew from 3.6% to 4.2%. The processing industry showed a slowdown in the growth from 3.1% to 2.4%. The mining industry demonstrated a slowdown from 2.2% to 2%.
The processing industry in May 2018 from May 2017 increased production by 3.2%, in the supply of electricity, gas and steam by 8.6%, while the mining industry decreased it by 1.9%.
18 UKRAINE Country Report July 2018 www.intellinews.com