Industrial production declined slightly in May: Data

ANKARA

Türkiye’s industrial production shrank by 0.2 percent in May from a year earlier, data from the Turkish Statistical Institute (TUİK) have shown.

The pace of annual decline in industrial output, however, eased from 1.2 percent in April.

The annual contraction in production was in line with market expectations.

On a seasonally and calendar adjusted basis, industrial production rose by 1.2 in May month-on-month after falling by 0.9 percent in April, TÜİK said on July 12.

Manufacturing output, which is an important indicator as to where the economy is headed, rose by 0.6 percent year-on-year, while the monthly rise in the sector’s production was 0.9 percent, which compared favorably with the 1.1 percent month-on-month contraction recorded in April.

The latest PMI survey showed that expansion in the manufacturing sector continues in June. The headline PMI posted at 51.5 last month, signaling a further modest improvement in the health of the manufacturing sector.

New manufacturing orders rose for a fourth straight month in June, according to the survey, conducted jointly by the Istanbul Chamber of Industry (ISO) and S&P Global.

Intermediate good production was down 5.5 percent, but the durable consumer goods sector’s output rose by a robust 11.8 percent from a year ago and 4.6 percent compared with April. Non-durable consumer goods production fell 1.2 percent from May 2022.

Energy production declined by 5.7 percent on an annual basis in May, which followed the 7.2 percent year-on-year drop in the previous month.

The capital goods manufacturing sector’s strong performance continued. The sector’s output, which grew 17.4 percent, increased by 18.1 percent compared with May last year.

TÜİK’s monthly data also showed that high-tech goods production grew more than 6 percent year-on-year and increased by nearly 13 percent month-on-month.

Medium-high tech products output increased by 7.3 percent from a year ago, but they declined slightly by 0.6 percent from April.

TÜİK on July 12 separately reported that the amount of cow’s milk collected by dairy enterprises rose by 5.9 percent in May from a year ago to 944,349 tons. The annual increase in milk production was 4 percent in the January-May period.

Türkiye’s chicken meat production climbed 5.1 percent to more than 210,000 tons, while turkey meat output soared 14 percent to 4,723 tons.