Turkey's industrial output increase is on track

Turkey’s industrial output increase is on track

The State Institute of Statistics (DIE) reported that Turkey's industrial output surged by 12.8% in July from a year earlier, slightly below the market expectations of 13.6%. Accordingly, the increase pace of average industrial output reached 13.2% in the first seven months of the year. Industrial output declined by just 0.8% on a monthly basis. When we examined the sectors, the intense increase in industrial output largely grew out from the 14.2% of growth recorded in the manufacturing sector. Electric, gas and water sector also contributed to the industrial output with a 6.2% of growth, but the 1% contraction registered in mining sector impacted industrial output negatively. The increase in industrial output is attributed to the revival in domestic demand, the rise in investment demand and especially the growth of manufacturing sector. The sectoral breakdown of output indicates that the increase in output still continues to concentrate in certain sectors. When compared with the same period of last year, automotive sector grew by 61%, chemicals output by 32.4%, brown goods by 42% and machinery and equipment by 41%.