Ukraine: Industrial output rebounds notably in August
September 26, 2016
Industrial production returned to growth in August, after contracting in July. According to data released by the State Statistics Service of Ukraine, industrial production rose 3.4% annually, which contrasted the 0.2% contraction recorded in July. The rebound was driven by broad-based growth across the main categories of the index. The trend continued to improve in August and the annual average variation in industrial output rose from July’s minus 0.7% to minus 0.1%.
Looking at the regions, the recovery in the eastern areas of Luhansk and Donetsk, Ukraine’s industrial heartland, continued and output grew at a double-digit pace in both regions. The conflict between the Ukrainian government and pro-Russian separatist groups caused industrial production to plummet by over 10% in 2015.
Sequential data suggested a gloomier picture for industrial production. In August, output fell a seasonally-adjusted 0.8%, which contrasted a 7.0% expansion in July.