Turkish industrial output growth edges higher
Turkish industrial production grew 6.4 percent annually in May, edging higher as the government stimulated the economy ahead of elections in June.
The expansion increased from 6.2 percent in April, the State Statistical Institute said on Tuesday. The figure beat market expectations of 5.5 percent, according to a survey by Trading Economics.
Turkey’s government is seeking to spur growth in the $880 billion economy despite the headwinds of a sell-off in emerging markets. Concern among investors for economic overheating has led to a decline of more than 20 percent in the lira against the dollar this year, prompting the central bank to hike rates by 425 basis points to 17.75 percent in May and June. Inflation stands at 15.4 percent and is set to accelerate in July and August.
The expansion in manufacturing was led by durable goods, production of which increased 5.8 percent on an annual basis in May. Capital goods production jumped 6.1 percent. Output of non-durable consumer goods increased 8.6 percent compared with 11.7 percent in April.
However, industrial production dropped 1.6 percent on a monthly basis in a sign that economic activity may be slowing down. It rose 1 percent monthly in April.