Turkey’s industrial output slows down due to refining output
According to the State Institute of Statistics (DIE) data,
Turkey's industrial
production rose by only 5.4% in September compared to the same period of last year, which is lower than the market consensus of 9.1%. The index level increased from 116.8 recorded in the previous month to 123.1 in September.
The lower than expected industrial
production is mainly due to the refined petroleum
production that declined by 22.2% compared to the corresponding period of last year as one refinery stopped operating and one refinery of TUPRAS was closed for maintenance in September. Excluding the refining output, industrial
production rose by 9.4%. According to TUPRAS, the maintenance works at various units will continue throughout October, which will impact industrial
production in October as well.
Exports, which are the main propellers of growth since the crises, reached to a new record level of $5.9 billion in October. The increase in exports indicates that the industrial
production index will stay robust in October.
On the other hand, economists consider that the slowdown in industrial output will be affirmative for the current account and disinflation process.