Turkish industrial production rises despite slowest pace in seven months
ANKARATurkish industrial production rose less than expected in May, marking the lowest growth in seven months, official data has shown, suggesting strong exports have struggled to compensate for the challenges in the domestic market.
Industrial production, the main indicator of growth, rose 3.3 percent compared to the same month of last year, but failed to meet analysts’ expectations, which were hovering around 4.6 percent, according to data announced by the Turkish Statistical Institute (TÜİK) on July 8.
The industrial production figure, which recorded its lowest increase since October 2013, has cast questions over second quarter growth, which was expected to preserve its relatively strong performance on the heels of exports.
The better than expected industrial performance in the first four months of the year had raised hopes for attaining robust growth, despite the plunge in spending in the domestic market affecting manufacturing. However, the announcement from May’s industry data further complicated the mixed messages regarding growth.
Tobacco up, transportation down
According to the TÜİK data, the highest annual rise was seen in tobacco products, production of which jumped by 9.8 percent compared to May 2013.
Transportation items, meanwhile, witnessed steep declines, with production slumping 21.2 percent in May year-on-year.