Turkish industrial production rose 0.3 percent in July from a month earlier. AA photo
Turkish industrial production rose 0.3 percent in July from a month earlier, indicating that the rebound from last year’s recession may be losing momentum.
Seasonally adjusted output had contracted 2.2 percent in June, following five months of gains, the statistics agency in Ankara said on its website on Tuesday. Output was up 8.9 percent from July 2009 when adjusted for the number of working days, the statistics agency said. Without adjustment, the annual figure gained 8.6 percent.
Gross domestic product jumped 11.9 percent in the first three months of the year as the economy recovered some of the output lost in the global crisis. GDP may have increased more than 10 percent in the second quarter, Industry Minister Nihat Ergün said on Monday. The pace of growth is likely to slow in the second half of the year, according to the International Monetary Fund, which predicts 2010 growth of 6.1 percent.
Annual industrial output growth of 8.6 percent “sounds okay but seasonally and working day adjusted monthly growth was merely 0.3 percent,” Tevfik Aksoy, chief economist for Turkey, the Middle East and North Africa in Morgan Stanley London, said in an e-mailed report on Tuesday. The data “do not change our view that economic growth is showing signs of moderation.”
The Turkish Central Bank has held the benchmark interest rate at a record low of 7 percent for nine months and on Aug. 19 said it was likely to remain unchanged for “some time” as inflation declines and demand from Europe for Turkish-made goods stays weak.