OREANDA-NEWS. April 19, 2010. Rosstat released industrial output figures revealing 5.7% growth in March and a 5.8% rise in 3M10, reported the press-centre of OTKRITIE FC.

View: We see these figures as positive signs, as industrial output figures were higher than our forecast (+3.3%) and the Bloomberg consensus (+3.2%). Furthermore, improvement from February data (when industry was up just 1.9% YoY) comes primarily from the manufacturing segments, which could indicate improved domestic demand.

However, we believe it is premature to ascertain whether industrial recovery is sustainable, as the upbeat results reflect a one-off boost in the production of turbine and electric generators. That said, though we view the March figures positively, we remain cautious regarding Russia's economic recovery and reiterate our forecast of +3.1% YoY growth.