Turkey: Industrial production expands at slowest pace in two years
March 8, 2012
In January, industrial production expanded 1.5% over the same month last year. The reading was below both the 3.7% rise recorded in December as well as market expectations of a 3.5% increase. The figure marked, in fact, the slowest growth rate observed since November 2009. The deceleration over the previous month was broad-based, although it mainly reflected slower growth in the manufacturing sector. A month-on-month comparison corroborates the deterioration reflected in the annual figures, as industrial production contracted a seasonally and calendar-adjusted 3.1% in January, which contrasted the 2.5% expansion observed in December. Moreover, the trend continues to point downwards, with annual average growth in industrial production falling from 8.9% in December to 7.6% in January. The government anticipates growth to reach 4.0% this year.