OREANDA-NEWS. Annual production growth in the industrial sectors accelerated in June more than twofold as compared to May. The manufacturing sector contributed most to the acceleration of output dynamics, the July issue of ‘Economy: Facts, Estimates and Comments’ information and analytical commentary says.

Among the consumer industries food industry and chemical industry demonstrated sustainable growth, manufacture of clothes, leather goods, light motor vehicles experienced the recovery growth, whereas the other sectors faced stabilisation.  Output growth continued for raw materials and intermediary goods virtually in all goods items in June 2016.

In terms of investment products we can observe output stabilisation for construction materials, machine-building and engineering industries, and recovery growth in the manufacturing of metal products. However, a sharp decline in ship and aircraft building weakened output dynamics for investment products in June.

Alongside this, the consumer and investment demand remained low. According to the commentary, the revival of economic activity is likely to be largely subject to dynamics of inventories and external demand. At the Bank of Russia estimate, the annual rate of GDP contraction was 0.2 % - 0.4 % in the second quarter of 2016, whereas, on the whole, the GDP will drop by 0.3 % - 0.7 % in 2016.