Jun 13 2018

Turkish industrial output slows for fourth month

Turkey’s industrial production slowed for a fourth month in April to the lowest level since May last year, data provided by the State Statistical Institute showed.

Output rose 6.2 percent compared with April 2017, with manufacturing output climbing 6.3 percent and output of electricity, gas, steam and air conditioning increasing 3.8 percent, the institute said on Wednesday. Production in mining and quarrying jumped 10.1 percent, it said.

Turkey production
Source: State Statistical Institute

Production among manufacturers was led by non-durable consumer goods and intermediate items, the figures showed. Durable goods output fell 0.1 percent and capital goods production declined 0.8 percent.

Turkish industrial production is slowing after inflation remained in double digits this year and the lira slumped to record lows against the dollar. Economic growth climbed 7.4 percent in the first quarter, led by consumer demand. But most analysts are expecting a slowdown in the rest of the year after the central bank hiked interest rates by 425 basis points in May and June to 17.75 percent to arrest the lira’s decline.

Industrial output rose 0.9 percent in April compared with March, in the third month of increases. Monthly output has climbed in five of the last six months.

Turkey production
Source: Turkish Statistical Institute