Industrial production dropped in August

Industrial production dropped in August

Industrial production dropped in August

Turkey’s industrial production dropped 3.6 percent year-on-year in August, data from the Turkish Statistics Institute (TÜİK) showed on Oct. 14.

The mining and quarrying index posted the highest annual fall among industrial sub-sectors, with 6 percent, TÜİK said.

The electricity, gas, steam, and air conditioning supply index fell 0.4 percent.

On a monthly basis, the country’s industrial output also dropped 2.8 percent in August, after recording a 4.3 percent month-on-month rise in July.

“While mining and quarrying index fell 9.2 percent and manufacturing index dropped 2.7 percent, electricity, gas, steam and air conditioning supply index rose 0.9 percent in August 2019, compared to the previous month,” TÜİK said.

Turkey’s industrial production declined by 1.1 percent on an annual basis in July.

The calendar-adjusted data showed that manufacturing production declined 3.3 percent on an annual basis in August that followed a 1.2 percent drop in the sector’s output in the previous month.

Intermediate goods production, which fell 5.3 percent in July, dropped by 6.5 percent from a year ago in August, while durable consumer goods output plunged 9 percent in the month after declining 6.7 percent in July.

Non-durable consumer goods sector saw a 0.9 percent increase in its production in August, easing from the 3.5 percent annual increase the sector recorded in the previous month.

Capital goods output, which rose by 2.1 percent on an annual basis in July, shrank 5 percent from a year ago.

The energy sector’s production grew 3.6 percent in August compared to the same month of 2018 that came on top of the 2.1 percent annual expansion in output in July.

In the New Economic Program, released in September, the government said it expected the Turkish economy to expand at 0.5 percent this year.

The government’s growth target for 2020 and 2021 is 5 percent.

The program foresees that fixed capital investments will increase 9.3 percent next year after contracting around 10 percent in 2019. The government predicts that private capital investments will grow 12 percent next year and 9.5 percent in 2021.