Turkish industrial production strong in year-end

ISTANBUL

DAILY NEWS photo

Turkish industrial output soared over expectations in the last month of last year, albeit indicating exceptional growth stemmed from the boosted demand of domestic consumers who wanted to avoid imminent consumption restrictions.

Calendar-adjusted industry output in the country rose by 7.1 percent in December 2013 compared to the same month last year, thanks to an increase in all sub-sectors, the Turkish Statistical Institute (TÜİK) announced Feb. 10.

While unadjusted industry manufacturing remained the same as the previous month, it recorded a 6.9 percent rise on an annual basis.

TÜİK data released yesterday also showed the total rise in industrial output, which was 2.5 percent in 2012, became 3.05 in 2013.

The unadjusted industrial production of Turkey had surged 4.6 percent in November, covering for the contraction observed in October.

“The data signals that Turkish economy grew around 4 percent in the last quarter and through the whole of 2013,” a note issued by Odeabank after the announcement of strong industrial data read.
Still, the strength of industrial production is also expected to decrease in the first months of this year.

“We predict the production that overpassed the expectations due to the demand moved to the earlier and strong export rise in December will slacken in February because of macro-cautious measures and monetary tightening,” the note also warned.

New restrictions on installment payments in a number of sectors are expected to curb domestic demand, analysts say, suggesting this indicates the rise is a one-time exception.

Domestic consumers boosted their demand for products to avoid new measures put into practice as of Feb.1 to curb consumer loans and the use of credit cards to pay for goods by monthly installments.