Turkey industrial production growth weakest since 2016

Turkey’s calendar-adjusted industrial production index gained 3.2 percent year-on-year after in June, marking the lowest annual growth rate registered since December 2016
Thursday, 16 August 2018 19:57

Turkey's industrial production growth more than halved in June to its weakest pace in one-and-a-half years, figures from the country’s statistics agency, Turkstat, showed Thursday.

Industrial production rose 3.2 percent year-on-year after growing 6.5 percent in May. Economists had forecast a 5 percent increase. The latest production growth was the weakest since December 2016, when output rose 1.4 percent.

Manufacturing output growth slowed to 2.9 percent from 6.7 percent, marking the lowest figure since December 2016.

Production of durable consumer goods and capital goods declined. Compared to the previous month, industrial production decreased 2 percent in June.

All sub-sectors of the seasonal and calendar-adjusted industrial sector slipped month-on-month in June.

The mining and quarrying index dropped the most, down 5.1 percent from May.

The manufacturing and electricity index slipped 2.2 percent, and the gas, steam and air conditioning supply index dropped 2.1 percent.

Turkey’s Industry and Technology Minister Mustafa Varank said the economy is going "robustly" as led by its industry.

Turkey’s lira has slumped almost 40 percent against the dollar this year and headline consumer price inflation has accelerated to almost 16 percent, paring demand for goods and services. Inflation in the industrial sector jumped to 25 percent in July as the cost of imported goods surged.