In May 2012, the production index of basic industries accelerated to 3.2% year on year (1.3% in April) owing to high domestic demand. In January-May, the production index of basic industries grew by 2.2%, compared with the corresponding period of the previous year.

Steadily rising household real income helped maintain domestic demand, which had implications for retail trade turnover data. The retail trade turnover growth accelerated to 17.9% year on year (16.3% in April), contributing 1.4 p. p. to the growth in the production index of basic industries.

A further increase in public funding boosted investment activity. In January-May, construction output was up by 0.3%, compared with the corresponding period of the previous year. According to estimates made by the Department, construction output grew by 9.6% year on year in May, even against the backdrop of last year’s high growth rates (18% in May 2011).

The industrial output increased by 1% year on year in May, which was driven by heightened demand and rises in the world prices for mineral fertilizers. As a result, the output of chemical industry expanded at an annual rate of 16.4%. Among other contributors to an upward trend in the industrial output noted should be an increase in exports of electric power. As a consequence, generation of electric power accelerated to 4.8% year on year in May. Weak external demand recorded during the past 9 months has dragged down economic growth. In May 2012, the output of machine building grew at an annual rate of 0.5%, whereas that of metallurgy industry declined by 1.1%.

According to estimates made by the Department, GDP growth accelerated year on year in May, which was in line with the dynamics of the production index of basic industries. In January – May, GDP growth stood at above 2%, compared with the corresponding period of the previous year.