Calendar-adjusted annual industrial production saw a modest increase of 1.1 percent in June - below market expectations - when compared to June 2015. When compared with May, the adjusted industrial production decreased 1.4 percent, Turkey's statistics agency, Turkish Statistical Institute (TurkStat), announced yesterday.
Regarding industrial production sub-sectors, based on a year-on-year comparison, the mining and quarrying index increased by 7.9 percent, the manufacturing index decreased by 0.4 percent, while the supply index electricity, gas, steam and air conditioning increased by 9.3 percent in June 2016.
When compared with May, the manufacturing index fell 2.4 percent, the supply output for electricity, gas, steam and air conditioning increased by 2.1 percent, while the index for mining and quarrying increased by 6.3 percent.
Speaking to Anadolu Agency (AA), KapitalFx analyst Enver Erkan said: "Industrial production in Turkey remains well below market expectations, which foresaw a hike of 3.7 percent." Erkan noted that such data were expected for the slow summer months "but we expected to see this in the third quarter of the year."
Regarding a growth forecast for Turkey, which conventionally takes industrial production data into consideration, Erkan said, "We expect that Turkey's growth rate will be at 3.4 percent for the second quarter and 3.5 percent in 2016."
Turkey's economy grew by 4.8 percent during the first quarter of the year. Backed by strong domestic demand, the economy performed above expectations of 4.5 percent growth, despite geopolitical tensions and looming global recession.