Ukraine's industrial output rose 3% year-on-year in April following a 1% y/y growth in the prior month, according to the Ukrstat state statistics service.
Seasonally adjusted output dropped 0.6% month-on-month in April. In January-April, industrial output increased 2.6% y/y.
April manufacturing picked up 0.8% y/y after a 4.6% y/y decline in March. Metallurgy inched up 0.3% y/y (after a 3.7% y/y decline in March), while machinery jumped 5.2% y/y (after a 2.8% y/y drop in March). The decline in food production decelerated to 4.1% y/y (from 8.0% y/y in March). Growth in chemicals slowed to 31.1% y/y (from 39.4% y/y in March).
Mining production advanced to 5.6% y/y growth in April from 3.3% y/y growth in March. Ore mining jumped 9.0% yoy, while oil and gas production dropped 1.6% y/y. Coal mining rose 13.2% y/y due to a low comparative base from the prior year, while utilities output increased 8.6% y/y.
Evgeniya Akhtyrko at Kyiv-based broketage Concorde Capital wrote in a research note on May 24 that April's results only slightly added to industrial performance since the beginning of the year. The continuing decline in food production is especially disappointing given the large weight of this sector in Ukraine’s industry.
Moreover, the declining domestic food supply counteracts government efforts to curb high consumer inflation.
"So far, industrial performance is falling substantially behind our forecast of 4.6% y/y expansion in 2018," Akhtyrko added. "Hopefully, the 2018 crop, which is expected to be higher than last year, will help food production improve in the second half of 2018, pushing the overall industry result higher."