Turkey: Industrial output drops at an accelerated pace in April
Turkish industrial production fell 1.3% year-on-year in May, improving from the revised 3.8% drop in April (previously reported: -4.0% year-on-year); annual average industrial output contracted 3.1% in May, down from the 2.5% fall in April. The drop in production was driven by faltering manufacturing, and quarrying and mining output while electricity, gas and steam production accelerated markedly.
Sequential data also highlighted a gradual recovery in the sector.. Industrial output rose 1.3% over the prior month in May on a seasonally- and calendar-adjusted basis, increasing for the fourth time in the first five months of the year. Going forward, Muhammet Mercan, Chief Economist at ING Turkey, noted that “base effects from last year will contribute to the momentum in the second half [of the year]. Policy determination and a prudent policy mix will remain ley to sustain this performance.”