Industrial production fell by 12.6%y/yin August compared to negative 10.8%y/y growth in July. The figure is disappointing as the market was looking for a decline of only 10.8%. Manufacturing (-16.8%) and electricity (-11.1%) pulled down overall production. Nevertheless, Prime Minister Vladimir Putin said that first signs of recovery were visible and that growth in 2010 could turn out to be better than the currently forecast 1.6%.