Turkish industrial output grows far less than expected in July

ISTANBUL - Reuters

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Turkish industrial production rose a calendar-adjusted 0.3 percent year-on-year in July, data showed on Sept. 8, far below forecasts for a 3.4 percent rise and reinforcing the view that growth momentum is weakening.

On a month-on-month basis, calendar- and seasonally-adjusted industrial production fell 1.5 percent, the Turkish Statistics Institute (TÜİK) said.

“The negative surprise in industrial production supports the view that there is a loss of momentum in economic activity in the second half,” said Is Investment economist Muammer Kömürcüoğlu.

He said a similar picture was painted by recent leading indicators. Turkey’s purchasing managers’ index showed activity in the private sector shrank in August after growing slightly in July. Consumer confidence also hit its lowest level in six years in August.

Second-quarter gross domestic product data is due out on Sept. 10. A Reuters poll of 18 economists shows GDP is expected to have grown 3.45 percent year-on-year.

The same poll forecast full-year growth of 2.9 percent, below a government target of 4 percent in its medium-term program.