OREANDA-NEWS. July 19, 2011. The State Statistics Service (Derzhstat) reports that industrial production in Ukraine grew by 8.9% YoY in June 2011, compared to an increase 8.6% YoY and 4.9% YoY in May and April. The upward trend of the indicator is an encouraging sign. One factor affecting industrial production is the strengthening of domestic demand, although export-oriented industries continue to be the largest contributors to the recovery. Industrial production for 1H2011 has increased by 8.7% YoY, but there are also signs of the economy weakening as industrial production in June has decreased by 0.4% MoM.

The chemical industry saw the biggest jump in production over the first half of the year, improving by 22% YoY. The mechanical engineering sector was close behind at +21.2% YoY. At the same time, the production of coke and refined petroleum products fell by 3.6% YoY. Likewise, production of food, beverages, and tobacco decreased by 3% YoY for the six months.