Drop in Turkish industrial output slows
Posted by meb at September 8th, 2009
The industrial production will show signs of significant recovery in the final quarter of the year, according to Industry and Trade Minister Nihat Ergün. ‘But no one should expect a rapid and speculative rally. What’s important is to take healthy steps and enable a stable growth.’ DHA photo.
The pace of decline in Turkish industrial output slowed in July for the fifth consecutive month as the deepest contraction on record eased.
Industrial output fell 9.2 percent from a year ago, following a decline of 10.3 percent in June, the Ankara-based Turkish Statistical Institute, or TurkStat, said on its Web site Tuesday. Output was expected to decrease 9 percent, according to the median estimate of 12 economists polled by Bloomberg.
“It’s clear that the contraction will continue in the third quarter of the year,” said Özgur Altuğ, an economist at BGC Partners in Istanbul.
In the sub-sectors level of industry, the mining-sector index rose from 145.8 to 147.2, an increase of 0.9 percent, in July compared with the same month of the previous year. The manufacturing-sector index declined 10.5 percent, from 118.6 to 106.2, while the drop in the electricity, gas and water index was 3.2 percent in July compared with same month of the previous year. Output of intermediate goods dropped 10.8 percent and energy output declined 4.4 percent, while the output of durable consumer goods increased 3.5 percent.
The biggest decline was seen in the manufacture of miscellaneous transport equipment – 36 percent in July, compared to the same period last year. The manufacture of motor vehicles, trailers and semi-trailers also declined 27.3 percent during the same period.
The highest increase in output was experienced in the manufacture of radio, TV and communications equipment, with 36.5 percent.
Evaluating the situation, Industry and Trade Minister Nihat Ergün said that the wheels will begin to turn steadier in the final quarter of the year.
Improvement will start in the final quarter:
The industry began to improve as of March, he said. It has been rising ever since and that should not be ignored, Ergün added.
“Comparing the data to previous months would bear healthier results than comparing it to a year earlier, when the impact of global crisis was not being felt as strongly,” he said. “During the months of summer a grave rally in the production was not expected anyhow.”
“Wheels in industrial production will begin to turn right in the final quarter of the year,” said Ergün. “But no one should expect a rapid and speculative rally. What’s important is to take healthy steps and enable a stable growth.”
The highest risk is to disturb the confidence and stability in the country, he said. “It’s our common responsibility to protect this environment. Therefore pessimistic speculations should be avoided,” he added.
source: Hurriyet daily news
Related posts: