Turkey retail sales grow for first month since currency crisis

Retail sales in Turkey rose for the first time on an annual basis since August last year, data published by the Turkish Statistical Institute showed.

Retail sales volume at constant prices increased by an annual 2.7 percent in September, the institute said on its website on Friday. Sales also climbed 0.6 percent from August, the second-straight month-on-month advance.

The figures are broadly in line with data published by the Council of Shopping Centres – Turkey and Akademetre Research earlier this month, which showed revenue at malls rising by an annual 3.5 percent in September.

The Turkish government is seeking to stimulate the economy with cheap loans from state-run banks, tax breaks and plans to help troubled companies restructure their debts. Turkey’s economic data is now benefiting from annual base effects – a currency crisis that erupted last August pummeled domestic demand in the months that followed.

The retail sales data strips out the erosive effects of inflation because it calculates the amount of goods sold. On a non-inflation adjusted basis, sales increased by 11.2 percent. Consumer price inflation stood at an annual 9.3 percent in September.

Sales of non-food items, excluding fuel, climbed by an annual 4.7 percent, led by a 9 percent rise in sales of textiles, clothing and footwear. Sales of food, drinks and tobacco decreased by 2 percent. Fuel sales rose by 4.4 percent.

The report follows figures published by the institute on Thursday that showed September industrial output expanding by an annual 3.4 percent. The increase was also the first since August last year.

Turkey retail sales
Source: Turkish Statistical Institute