OREANDA-NEWS. On July 20, 2009 Rosstat reported continued deterioration in key economic indicators in June. The 20.1% decline (-23.1% in May) in capital investments were consistent with a -19.6% drop in domestic construction. Retail trade, a proxy for consumption, also continued its slide, dropping 6.5% in June (vs. - 5.6% for May). Wages and individual income dipped -5.2% and -1.0%, respectively, reported the press-centre of OTKRITIE FC.

The only leading indicator that showed any improvement was transportation, which slowed its slump to -16.1% in June, from its 5M09 figure of -17.6%.

View. The June investment data is extremely negative, particularly given last year's weaker May-June base, suggestive of an even further worsening of the prospects for economic recovery. Consumption is also degenerating, hampered by weak incomes.

The support for GDP recovery looks to come from an end of de-stocking,the restraint of imports and government consumption which means that our -6.0% GDP forecast for 2009 is beginning to appear rather optimistic.