Turkey: Industrial production contracts for the first time since 2009
October 9, 2012
In August, industrial production contracted 1.5% over the same month last year. The reading contrasted the revised 3.3% rise recorded in July (previously reported: +3.4% year-on-year) as well as market expectations, which had anticipated that industrial output would increase 2.6%. The figure marks, in fact, the first contraction seen in nearly three years. The monthly drop was entirely driven by a decline in the all-important manufacturing sector, whereas mining and quarrying as well as electricity, gas and steam expanded in annual terms. A month-on-month comparison corroborates the deterioration reflected in the annual figures, as industrial production fell a seasonally and calendar-adjusted 2.3% in August, contrasting the 1.3% increase observed in July. As a result of the monthly contraction, the trend continues to point downwards, with annual average growth in industrial production falling from 4.8% in July to 4.4%.