Turkey’s calendar-adjusted industrial production index moved up by 1% y/y in February, marking the fifth consecutive rise.

However, the rate of growth in the country’s industrial output slowed from the 2.6% y/y rise recorded in January. It was also the weakest seen since December when the adjusted index was up 1.6% y/y.

Economists expected the adjusted index to increase by 3% y/y in February.

The unadjusted index fell by 1.7% y/y in February after increasing 4.2% y/y in the previous month, data from national statistics office TUIK also showed on April 10.

On a calendar and seasonally adjusted basis, Turkey’s industrial production contracted 0.4% m/m in the month.

The February figures are disappointing, but the latest PMI survey showed that Turkey’s manufacturing activity gained momentum in March, signalling that the economy may still be on the mend.

Turkey’s GDP growth picked up to 3.5% y/y in the fourth quarter of 2016.

Manufacturing output increased by 0.7% y/y in February after registering a 2.8% y/y rise in January while durable consumer goods production advanced 5.8% y/y in February, accelerating from the 2% y/y increase in the previous month. Output in the non-durable consumer goods sector contracted 0.9% y/y versus the 1.1% y/y increase in January.

Energy output was up 7.4% y/y versus 6.9% y/y in January.

Output in the capital goods manufacturing industry rose by 5.5% y/y in the month, slowing from 12.9% y/y in January while intermediate goods contracted 3.4% y/y in February following a 3.5% y/y decline recorded in the previous month.

Calendar-adjusted Industrial Production Growth by Main Industrial Groups (y/y, %)
	Aug	Sep	Oct	Nov	Dec	2016	Jan	Feb
Total Industry	2.0	-2.9	2.2	2.6	1.6	1.8	2.6	1.0
Intermediate Goods	1.2	-1.4	0.4	-0.5	-3.7	0.3	-3.5	-3.4
Durable Consumer Goods	1.3	-9.4	-9.5	0.0	-5.4	-3.2	2.0	5.8
Non-durable Consumer Goods	6.2	-6.4	4.1	0.8	6.7	3.1	1.1	-0.9
Energy	4.6	0.1	5.7	8.2	3.2	4.8	6.9	7.4
Capital Goods	-4.4	-2.1	3.8	7.3	5.0	2.1	12.9	5.5
Source: tuik