OREANDA-NEWS. Ukraine's industrial output growth accelerated from 10.7 % y/y in 9M2007 to 11.0% in 10M2007 (15.8% in January) and remains much higher than it was in the corresponding period of 2006 (5.4%). In October 2007, industrial output grew by 13.7%, y/y, while it increased by 10.2% m/m. All the industries showed positive yearly output growth. The largest contribution to the industrial output was made by metallurgy (24.4% share in 2006) with growth figures of 9.9% in 10M2007, y/y, though this is slightly slower than in 9M2007 (10.5% y/y). Mechanical engineering (accounting for about 12.9%) and food processing (14.8% share) also experienced very high growth, 27.4% and 12.1%, respectively, in 10M2007, y/y.

The main reason for the growth was accelerating production in mechanical engineering, which was caused by increased domestic commercial demand for equipment, and the retail demand for automobiles, which was connected to a higher consumer credit availability. Millennium Capital's analysts expect industrial output to continue growing at high rates in the next 2 months, perhaps at a slightly slower rate.