Turkey’s Oct industrial output data “ice in pants for those hoping for V-shape recovery” says economist

By bne IntelliNews December 13, 2019

Turkish industrial production rose for the second-straight month in October—but the pace of the recorded growth was significantly less than anticipated, weighing on expectations for a fast recovery from a year that’s included a bitter recession.

October output was up 3.8% y/y, following September’s 3.4% y/y expansion, the Turkish Statistical Institute (TUIK) said on December 13. The median forecast of a Reuters survey of economists earlier this week predicted 6.2%.

"Turkey's worse than expected industrial production release is unwelcome ice in the pants for those hoping for a V-shape recovery," said Erik Meyersson, senior economist at Swedish bank Handelsbanken, in comments posted on Twitter. "Yet more important than one month's release is that TR IP is struggling to reach pre-2016 trends."

Production of non-durable consumer goods moved up by an annual 4.9% in October, the TUIK said. Output of energy rose by 8.4% and that of intermediate goods by 4.2%. Manufacturing of durable consumer goods, on the other hand, was down 5.1%.

October industrial production fell by 0.9% m/m, the TUIK added.

Related Articles

Romania’s Banca Transilvania plans another takeover in Moldova

Banca Transilvania (BT), the biggest financial group in Romania, plans to take over Microinvest, the leader of the non-bank financial market in Moldova specialised in financing micro-enterprises, BT ... more

Further Turkey rate cut on Jan 16 expected by 13 of 21 surveyed economists

Thirteen of 21 economists surveyed by Reuters said they expected that the Turkish central bank would bring in another rate cut at its monetary policy committee (MPC) meeting on January 16. The ... more

Bulgaria's FIBank plans €103mn capital hike to meet ECB requirements

Bulgaria’s locally-owned First Investment Bank (FIBank) plans to raise BGN200mn (€103mn) in order to cover the capital shortfall found by the European Central Bank during an asset quality review ... more

Dismiss