Against the backdrop of a low comparison basis of the previous year, a downward trend in the industrial output ceased in April (0% year on year), with industrial output growth, excluding seasonal factors, standing at 0.2%. Export-oriented industries performed better on account of a gradual global economic recovery. A slight seasonal rise in world metal prices (0.8% in April versus March) made it possible to increase the average daily production of steel and cast iron and halt the downward trend in the output of metallurgy industry (from -1.6% on an annualized basis in March to -0.2% in April). The machine building performed better due to a revival in demand from Russia for products of rail carriage manufacturers (following a 5.6% decline in the output of machine building in March, a 6.5% increase was recorded in April).

A halt in the downward trend in industrial production caused the production index of basic industries to grow at a faster pace (1.3% on an annualized basis in April versus 0.5% in March). In January – April, the production index of basic industries grew by 1.8%, compared with the corresponding period of the previous year.

The retail trade turnover increased by 16.3% year on year in April (versus 13.5% in March), being the major contributor to the production index of basic industries growth (1.3 p.p.). The strong domestic consumer demand was primarily spurred by the high annual growth rate of real wages, which stood at 14.7% in the first quarter of 2012.

A revival in domestic investment demand was driven by the increased government funding. Against the backdrop of a high comparison basis of the previous year, a downward trend in the construction output halted in April, the construction output having contacted by 3.6% year on year (-5.6% in March).

The agricultural output growth accelerated significantly from 0.7% year on year in March to 2.2% in April due to a large volume of work arising from the need to re-sow winter crops, which had been damaged by severe frosts at the beginning of the year, contributing 0.2 p.p. to the production index of basic industries growth.

Data on the production index of basic industries and transportation industry dynamics suggest an improvement in the GDP dynamics in April, compared with March. However, according to estimates made by the Department, the cumulative rates of GDP growth remained at a level of the first quarter.