Turkey: Industrial output grows at record pace in April
June 11, 2021
Industrial output rose 66.0% in year-on-year terms in April, which followed March's 16.7% increase. April's figure marked the strongest expansion on record, and benefited from a supportive base effect as the country was in lockdown in the same month a year prior due to the Covid-19 pandemic, which weighed on activity. The upturn largely reflected an upturn in mining and quarrying and manufacturing output.
Meanwhile, annual average industrial production growth rose to 11.5% in April (March: +3.4%). This signals an improving trend in the industrial sector.
On a seasonally- and calendar-adjusted bases, industrial production swung from a 0.7% expansion in March to a 0.9% contraction in April. This was likely driven by renewed restrictions, dragging on activity.
Muhammet Mercan, chief Turkey economist at ING, commented that on top of the impact of restrictive measures “financial volatility and higher rates added to the weaker performance” on a sequential basis. Mercan continued:
“This will likely continue in the coming months as evidenced by high-frequency data i.e. manufacturing PMI falling into the contraction zone in May, weakness in sectoral PMIs etc, though accelerating vaccinations and an expected recovery in tourism should limit the downside in activity.”