Turkey: Industrial activity falls at sharpest rate since August in March
Industrial production decreased 2.0% year-on-year in March (February: +8.5% yoy; previously reported: +7.5% yoy). March’s result marked the worst reading since August 2019. The weakening was due to a drop in mining and quarrying output, while manufacturing and energy output also fell. Meanwhile, annual average growth of industrial production was stable at 1.8% in March.
On a seasonally- and calendar-adjusted monthly basis, industrial production fell 7.1% in March (February: +1.9% mom). The reading marked the worst result on record and came on the back of government-imposed restrictive measures to curb the spread of Covid-19.
This year, industrial activity is expected to shrink due to the economic impact of Covid-19, which has extinguished economic activity. The duration of restrictive measures remains uncertain and will have a key bearing on the return of domestic and foreign demand.