IPANEWS

Turkish industrial production declines above estimates by 3.9 percent

A report by the Turkish Statistical Institutes’ (TUIK) from June shows that industrial production declined above market expectations with a 3.9 percent drop.

The expectation in the market was that the calendar-adjusted production would decrease by 1 percent annually.

Despite this low estimate, seasonal and calendar-adjusted industrial production increased by 1.3 percent in May but decreased 3.7 percent in June.

The industrial decline is 9.6 percent, unadjusted data shows. Decline expectations in the Forex survey were 6.2 percent.

Industrial production decreased by 3.9% compared with the same month the previous year.

According to the data, the sub-sectors of industry (2015 = 100 reference years) analysis shows that the index of mining and quarrying increased by 4.8 percent compared to the same month of the previous year.

The index of manufacturing industry decreased by 4.6 percent and, gas, steam and air conditioning production and distribution sector index increased by 0.5 percent. Industrial production decreased by 3.7% compared with the previous month.

When the subsectors of the industry (based on 2015=100) were examined, while mining and quarrying index increased by 2.4%, manufacturing index decreased by 4.2% and electricity, gas, steam and air conditioning supply index decreased by 1.3% in June 2019, compared with previous month, TUIK’s June 2019 Industrial Production Index shows.

TUIK figures show that industrial production decreased by 3 percent compared to the same quarter of the previous year.

“In the second quarter of 2019, calendar-adjusted industrial production decreased by 3 percent compared to the same quarter of the previous year. Seasonally and calendar-adjusted industrial production increased by 0.5 percent compared to the previous quarter,” TUIK said in the statement.

Turkish lira outperforming compares to other emerging markets

The Turkish lira declined some 1.4% to stand at 5.5670 on Monday and weakened as far as 5.57 earlier in the day, however, the currency gained some momentum and firmed as far as 5.5480 earlier on Thursday. “The lira has been attractive to investors due to high real interest rates, helping it outperform its emerging market peers recently,” said William Jackson, chief emerging markets economist at Capital Economics, Reuters quoted.

Protests in Hong Kong, China-US trade war negatively affects developing countries including Turkey as investors fear of a world recession.

Turkey’s industrial production reduced by 7,3 percent

 

 

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