Ukraine's industrial output jumped 5.2% y/y in April, advancing from 2.1% y/y in March, due to accelerated growth in manufacturing and mining, the State Statistics Service reported on May 23. Seasonally adjusted output increased 0.9% m/m. In 4M19, industrial output increased 0.9% y/y.
Manufacturing output accelerated 7.4% y/y in April (after 5.0% y/y growth in March). In particular, output in machinery surged 10.8% y/y (vs. a 1.5% y/y decline in March). In addition, metallurgical production increased 9.9% y/y (vs. 8.9% y/y growth in March), and food production rose 6.6% y/y (vs. 7.3% y/y growth in March).
Mining output increased 6.0% y/y in April (vs 1.8% y/y growth in March). In particular, oil and natural gas output improved 6.3% y/y, and iron ore production rose 4.6% y/y. Meanwhile, coal production dropped 8.4% y/y. The supply of electricity and natural gas inched up 0.3% y/y in April.
Regionally, growth was strongest in the Rivne (29.7% y/y), Vinnytsia (28.6% y/y) and Sumy (24.6% y/y) regions. Declines were steepest in the Volyn (-6.6% y/y), Zhytomyr (-9.5% y/y) and Kyiv (-5.6% y/y) regions.
Restored growth in the machinery sector boosted industrial output in April. In addition, growing metallurgy, which benefits from a favourable situation at the external markets, encouraged advances in iron ore mining.
Concorde Capital said in a note it expected industrial output to increase 2.0% y/y in 2019 (vs. 1.6% y/y growth in 2018).