Türkiye’s industrial production declines 3.9 percent in July

ISTANBUL

Industrial production that plunged 5 percent annually in June declined by 3.9 percent year-on-year in July, data from the Turkish Statistical Institute (TÜİK) have shown.

On a seasonal and calendar-adjusted basis, the industrial production index inched up 0.4 percent month-on-month after declining 2.4 percent in July, the statistics authority said on Sept. 10.

In manufacturing, output, which plunged 7.2 percent in July, was down 5.1 percent in July, while production rose 0.5 percent month-on-month, comparing favorably with the 3.4 percent decline in the previous month.

The latest PMI survey suggested that the key manufacturing sector performed better in August.

The Istanbul Chamber of Industry’s (İSO) headline Türkiye Manufacturing PMI posted 47.8 in August, up from 47.2 in July.

Any figure greater than 50 indicates overall improvement in the sector.

The picture for international demand was more positive, with new export orders returning to growth for the first time since June 2023, the survey said.

The annual decline in production of the intermediate goods manufacturing sector eased from 6.5 percent in July to 4.3 percent in August, showed TÜİK data on Sept. 10.

Output of durable consumer goods producers was down 3.9 percent in July from a year ago but their production rose 3.6 percent compared with June.

In the non-durable consumer goods manufacturing sector, the annual decline in production slowed from 9.1 percent in June to 4.5 percent in July with output rising 2.8 percent month-on-month.

The country’s energy production was up 8.8 percent annually in July, however slowing from the 13.8 percent increase recorded in the previous month.

The year-on-year contraction in output of the capital goods manufacturing sector accelerated from 5.9 percent to 8.1 percent with monthly decline quickening from 2.2 percent to 4.1 percent.

The production index for the food industry fell 2.3 percent year-on-year, easing from the 6.4 percent contraction in output in June.

The mining and quarrying sector’s production recorded a 3.3 percent annual increase in July, comparing unfavorably with the 8.4 percent rise in output in June, according to TÜİK data.

The government’s updated medium-term program, which was unveiled last week, targets a GDP growth of 3.5 percent for 2024, a downward revision from the previous program’s 4 percent of economic growth.

The government forecasts that the economic growth will accelerate to 4 percent in 2025 and to 4.5 percent in 2026.