OREANDA-NEWS. August 18, 2009. According to Rosstat, Russian industrial output was down 10.8% YoY in July, and 14.2% YoY for the 7M09, reported the press-centre of OTKRITIE FC.

View: A month ago, the slowdown of Russia's industrial decline in June to -12.1% was treated positively, but was viewed by many as a one-off occurrence.

The July figures indicate further improvement. We treat these results positively as we believe that they confirm that the decline in Russian industry is bottoming out. Stabilization, however, seems to be coming primarily from sectors driven by international demand, such as mineral extraction and metallurgy, and partly from import substitution.

That said, most investment goods are facing their deepest drops, which unfortunately confirms the viewpoint that the Russian economy will likely come out of recession on the back of an increase in global demand.