OREANDA-NEWS. October 19, 2009. In September,  Industrial Output (IO) grew 1.9%, m/m, and decelerated its annual decline from 29.6%, y/y in 8M09 to 28.4%, y/y in 9M09. The main factors of the IO growth have been increases in the mechanical engineering production (16.1%, m/m in September), in the food processing (2.1%) and the chemical industry production (5.5%). Meanwhile, the metallurgy output fell by 7.1%, m/m, a significant deterioration from 0.7%, m/m in August.

Millennium Capital: The revival of the IO is in line with our forecasts. Namely, a slight increase in mechanical engineering was due to an about zero output in the previous months. Meanwhile, food processing growth was mainly accounted for by the harvesting period. As Millennium Capital expected, metallurgy output continued declining due to low demand in the international markets and tough competition from the Asian producers. Millennium Capital forecasts that similar tendencies will continue till the year end, resulting in the IO drop of 22.7%, y/y in 2009.

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