Turkey’s industrial output beats expectations
Based on the data issued by
Turkey's State Institute of Statistics (DIE), the country's industrial output rose 5.5% year on year in March, exceeding market expectations of 5%.
Refining output fell 10% in March; however, food output rose by 24%, plastics and rubber by 26%, metallic good by 26.5% and
automotive sector output by 15.9%. Mining output was also exceptionally strong rising by 25.6%.
In the first quarter of 2005, industrial output saw a year-on-year increase of 8.2%. The strong increase in food output contributed to the overall increase. In addition, both the decline in VAT rate on basic food items at the beginning of 2005 and the DIE methodology change in conduction the industrial output survey may have generated such an increase in output.
On the other hand, the stagnation in global economy due to the increasing international interest rates and oil prices and Chinese negative influence in textile sector restrict the domestic output increases. In fact, the industrial output growth recorded in the first quarter of this year regressed compared to the same period last year. However, economists believe that the increase in mining output will maintain to balance the decline in
manufacturing sector. Furthermore, the high performance in furniture and electrical machine output will support the industrial output in the coming months.