Turkey: Industrial production falls sharply in October
December 17, 2018
Industrial production declined 5.7% in October in calendar-adjusted year-on-year terms, a deterioration from September’s revised 2.4% decrease (previously reported: -2.7% year-on-year). October’s reading was driven by contractions in the manufacturing, and electricity, gas, steam and air conditioning supply sectors, while the mining and quarrying sector grew solidly.
On a seasonally- and calendar-adjusted month-on-month basis, industrial output fell 1.9%, up from September’s 2.6% drop. Annual average growth in industrial output fell from 6.9% in September to 5.7% in October.
Turkey Industrial Production Forecast
Industrial production is likely to remain soft in the months ahead due to subdued domestic demand, tight financial conditions and elevated inflation putting pressure on firms’ margins. However, industrial production should gradually improve later next year and the year after, with FocusEconomics Consensus Forecast panelists expecting industrial production to rise 1.7% in 2019 and 3.8% in 2020.
Author: Oliver Reynolds, Economist
