Turkey's July industrial production unexpectedly rises
Business |
Turkish industrial production posts its biggest rise in four months in July, helped by a sharp growth in electricity, gas and manufacturing sectors.
Turkey's adjusted industrial production rose 1.8 percent in July compared to a month earlier, exceeding economists' forecasts, the country's statistics agency, TurkStat, announced Monday.
Manufacturing industry and electricity, gas, steam and air conditioning supplies made the largest contribution to industrial production in July - something experts said was a result of favorable weather conditions and demand for Turkish products from foreign countries. Mining and quarrying output, however, fell by 2 percent.
In the first quarter, Turkeys economy grew 4.3 percent, but it is expected to see a slowdown in the second quarter.
Analysts predict that the country's economy grew by 2.8 percent in the second quarter of 2014, according to Anadolu Agency's 'Growth Expectation Survey' released on Friday.
Monday's figures also indicated that calendar adjusted industrial production in the country increased by 3.6 percent compared with the same month last year.
Erdal Tanas Karagol, economy director at the Ankara-based non-profit SETA Foundation for Political, Economic and Social Research, says both the U.S. Fed decision about interest rate hike and the impact of the insurgency in Iraq on oil prices were factors causing concerns among Turkish business circles.
A financial analyst from Destek Securities, Eren Can Umut, says Turkeys 4.3 percent growth in the first quarter was an unexpected rise.
July saw an industrial increase because of Turkish Central Banks signal to cut its main interest rate further and that domestic demands in the country was better than expected," he said.
He added that the European Central Banks decisions would also have an impact on Turkish businesses in the forthcoming months.
"Turkeys industrial production will increase in line with the foreign demand for its exports from Eurozone countries, Umut said.
Manufacturing industry and electricity, gas, steam and air conditioning supplies made the largest contribution to industrial production in July - something experts said was a result of favorable weather conditions and demand for Turkish products from foreign countries. Mining and quarrying output, however, fell by 2 percent.
In the first quarter, Turkeys economy grew 4.3 percent, but it is expected to see a slowdown in the second quarter.
Analysts predict that the country's economy grew by 2.8 percent in the second quarter of 2014, according to Anadolu Agency's 'Growth Expectation Survey' released on Friday.
Monday's figures also indicated that calendar adjusted industrial production in the country increased by 3.6 percent compared with the same month last year.
Erdal Tanas Karagol, economy director at the Ankara-based non-profit SETA Foundation for Political, Economic and Social Research, says both the U.S. Fed decision about interest rate hike and the impact of the insurgency in Iraq on oil prices were factors causing concerns among Turkish business circles.
A financial analyst from Destek Securities, Eren Can Umut, says Turkeys 4.3 percent growth in the first quarter was an unexpected rise.
July saw an industrial increase because of Turkish Central Banks signal to cut its main interest rate further and that domestic demands in the country was better than expected," he said.
He added that the European Central Banks decisions would also have an impact on Turkish businesses in the forthcoming months.
"Turkeys industrial production will increase in line with the foreign demand for its exports from Eurozone countries, Umut said.
