Turkey’s industrial production rises for second consecutive month: report

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PHOTO: Business Turkey Today

Turkish industrial production rose for the second month in a row in October after a year of declines as the economy recovers from recession, though the expansion in output from a year earlier was lower than expected, at 3.8 percent, Reuters reported, citing official data.

Industrial output was expected to have risen 6.2 percent annually in October on a calendar-adjusted basis, according to a Reuters poll. The lira weakened slightly to 5.7875 against the dollar from 5.7780 before the data were released.

After three consecutive quarters of year-on-year contraction, Turkey’s economy grew 0.9 percent in the third quarter, shaking off a recession that followed a currency crisis last year when the lira lost nearly 30 percent of its value.

Industrial production, widely regarded as an indicator of broader Turkish growth, rose a revised 3.6 percent in September after 12 months of contraction. The production increase in September had previously been given as 3.4 percent.

On a month-on-month basis, industrial production fell 0.9 percent in October on a calendar and seasonally adjusted basis, the Turkish Statistical Institute (TurkStat) said.

Turkey’s central bank has slashed interest rates in recent months to revive the economy, most recently cutting its policy rate by 200 basis points to 12 percent on Thursday.

The key rate had stood at 24 percent in July. The data showed the manufacturing index rose 3.7 percent year-on-year in October, while mining and quarrying increased 6.5 percent, TurkStat said. Manufacturing output fell 1.1 percent from a month earlier.

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