Economics: Industrial production plummets in August

Макроэкономика 19.09.2014 Because of the war in Donbass, particularly in the Luhansk and Donetsk oblasts, industrial production in August sharply contracted 85.0% MoM and 58.7% YoY. Excluding annexed Crimea, the national industrial production index declined 21.4% YoY. The most severe contraction occurred in the energy subsector, down 31.7% YoY due to coal mining stoppages in areas under pro-Kremlin militant control. Capital goods declined 33.2%. While overall industrial production dropped 21.4% last month in Ukraine, consumer goods production (namely food production) decreased less dramatically by 1.5% YoY. By geography, the Odessa and Kherson oblasts increased 8.5% and 4.7%, respectively. Overall, industrial production is likely to decline 14-15% this year.